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Ethereum has been caught within a bout of sideways trading throughout the past several days and weeks, struggling to garner any decisive momentum as it hovers within the mid-$240 region.
The crypto did witness some immense volatility earlier this week that caused it to plummet to lows of $230 before posting a strong rebound that led it back up to its current price levels.
The price action seen throughout the past few days has done little to offer investors clarity into the cryptocurrency’s near-term trend, as it still remains unclear as to just how far buyers can extend their recently incurred momentum.
It does appear that there are a few bull favoring factors that suggest ETH will see further upwards momentum in the days and weeks ahead.
One such factor is that ETH has swept its upside liquidity on multiple occasions without posting any type of harsh drawdowns – a sign of strength amongst buyers, according to a popular trader.
From a technical perspective, traders also believe that the token is well-positioned to see further near-term upside.
Ethereum Flashes Signs of Technical Strength Despite Consolidation
At the time of writing, Ethereum is trading up marginally at its current price of $242.80, marking an extension of the consolidation phase that it has been caught within throughout the past few days.
It does appear that ETH is well positioned to see further upside in the days and weeks ahead as it maintains technically strong in spite of the recent rejection it faced in the mid-$250 region.
ETH is closely tracking Bitcoin’s price action at the present moment, as the benchmark cryptocurrency is currently trading up marginally at its current price within the mid-$9,600 region.
Although it is possible that BTC will determine where Ethereum trends next, it is important to note that analysts do believe ETH is technically strong in its own right.
As NewsBTC reported yesterday, one trader explained that he believes the cryptocurrency may decline down towards $215 before garnering enough buying pressure to spark a sharp rally up towards $300.
“Ethereum: Overall looking great. I’d prefer to see some more consolidation (just like the push towards $215). In that regard, $215-220 is a potential zone for longs. In general, as long as green holds, I expect further continuation with potential targets of $300.”
This Liquidity Trend Bodes Well for ETH
Another analyst explained that the cryptocurrency does appear to be fundamentally strong due to the fact that recent upside liquidity sweeps didn’t spark any downtrends.
He notes that this is a sign of underlying strength amongst its bulls.
“ETH took liquidity to the upside twice and bears still aren’t able to drag this down. This gives me the impression that ETH remains bullish.”
Featured image from Shutterstock.
