Ethereum saw a slight rally overnight that allowed it to move back towards its resistance within the lower $ 130 region. That move paralleled that of Bitcoin, which soared to highs of $ 6,700 before tumbling back towards $ 6,000.
This recent price action seems to confirm that ETH, BTC and most other cryptocurrencies are currently trapped in an area-bound trade as they may be seeking direction from the stock market right now.
An analyst notes that Ethereum’s surge led to an important level of resistance overnight, meaning that further momentum here could be just what it takes to generate some notable short-term gains.
Ethereum is rallying against major resistance as the crypto market protects against further downtrends
At the time of writing, Ethereum is trading a little over 2% from its current price of $ 130, marking a remarkable rise from the daily lows of $ 122 set late yesterday when bears tried to get the crypto back in the lower $ 100 push region.
However, the bulls were able to protect themselves against this decline and subsequently propelled the cryptocurrency to highs of around $ 134 where it encountered a slight rejection that led it to its current price level.
In the short term, analysts believe that ETH’s current price region could prove insurmountable, and a strong rejection here could cause the crypto to dip as low as $ 100.
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, stated in a recent tweet that the loss of the current level of ETH could result in a remarkable drop of 20% or more.
“Ethereum: Similar view to BTC. If we want a short term upturn I think this is the area to watch out for. Bounce? Eyes on $ 130 and $ 134 first. If I lose that level I’ll look at $ 102-105 and $ 94, “he remarked.
$ ETH #ETHEREUM
Similar view to $ BTC.
If we want a short term upturn I think this is the area to watch out for.
Bounce? Eyes first on $ 130 and $ 134.
If I lose that level I’ll look at $ 102-105 and $ 94. pic.twitter.com/XZblt7EHDj
– Crypto Michaël (@CryptoMichNL) March 23, 2020
Here are the key factors you should be aware of in order to get a glimpse into the future of ETH
The next Ethereum trends will depend heavily on Bitcoin, which has firmly steered the aggregate cryptocurrency market for the past few days and weeks.
If Bitcoin is able to hold above $ 6,000 and bid again on its key resistance in the upper $ 6,000 range, it is likely that Ethereum will move in parallel and will also try to break through its key resistance.
Whether or not this happens will likely depend on the stock market, as BTC has formed an eerie correlation to it in the past few weeks, meaning that further expansion of its ongoing downtrend could result in BTC and Ethereum falling significantly lower.
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