Ethereum is flashing some signs of strength today as it inches higher while caught within a short-term consolidation phase.
This consolidation trend came about after the cryptocurrency rallied to highs of $380 before facing some heightened selling pressure that caused its price to retrace back down towards $360.
It is now trading squarely between these two levels, with buyers and sellers largely reaching an impasse as they both attempt to gain control over the cryptocurrency’s near-term outlook.
This sideways trading bout has come about, in part, due to that seen by Bitcoin. The benchmark crypto rallied up to highs of $10,500 yesterday before facing some selling pressure that caused its price to slide down to $10,200.
Whether or not both Bitcoin and Ethereum are able to break above the upper boundaries of these trading ranges will have far-reaching implications for smaller altcoins.
One analyst is now noting that ETH’s outlook is growing stronger, which could mean that a sharp upswing is imminent in the near-term.
Ethereum Shows Signs of Strength Following Consolidation Phase
At the time of writing, Ethereum is trading up marginally at its current price of $369. This is around the price at which it has been trading at for the past 24 hours.
This ongoing bout of sideways trading isn’t necessarily a bad thing, as it has come about after bulls pushed the crypto far above its recent lows of $320 that were set just a few days ago.
The ardent reaction to this level helped the crypto salvage the strength that its market structure was previously showing. As such, one analyst is now noting that ETH may be poised to see some further upside.
His chart shows that it is vital it breaks $380 in the near-term in order for his bull-bias to be validated.
“ETH / USD: Chart looking pretty good right now, going long here,” he said while pointing to the below chart.
Image Courtesy of Cactus. Chart via TradingView.
Analyst: ETH’s Reaction to This One Crucial Level Will Determine its Macro Fate
Another analyst also emphasized the importance of $380, noting that whether or not Ethereum breaks above this level or is rejected here will have major impacts on its mid-term outlook.
“Price retested previous support as resistance – currently looks like a rejection. Vital for bulls to push back above,” he explained.
Image Courtesy of Teddy. Chart via TradingView.
How Ethereum trends throughout the coming weekend will likely have far-reaching impacts on its mid-term outlook.
Featured image from Unsplash. Charts from TradingView.