Ethereum’s price movement has been rather lackluster lately, which was the unfortunate result of its close correlation with Bitcoin.
This correlation has stifled its strength and resulted in sustained sideways trading, but it could soon help drive the cryptocurrency higher as analysts anticipate another uptrend in the coming days and weeks.
It still stays below some major levels that could act as hurdles to it, including $ 360 as well as the region between $ 380 and $ 400.
Until those levels are firmly broken above and ETH finds stability above $ 400, it could be difficult to get a critical uptrend.
An analytics firm is now finding that sentiment around the cryptocurrency is incredibly low, which could actually serve as a counter-indicator of Ethereum’s near-term prospects.
The company notes that a drop in interest and sentiment as extreme as the one seen now typically indicates that an upward move is looming on the horizon.
Ethereum continues to consolidate as the likelihood of an uptrend grows
At the time of writing, Ethereum is trading sideways at its current price of $ 353. This is slightly above where it has been trading for the past few days and weeks, with it climbing up alongside Bitcoin today.
That slight upward momentum comes when the stock market begins to stabilize, which gives the entire crypto market some momentum.
If ETH continues to track Bitcoin, another uptrend could be imminent in the coming days and weeks.
Analytics company: ETH’s social volume points to an imminent upward trend
While an analytics firm talked about where Ethereum could head in the coming days and weeks, an analytics firm stated that investors’ growing disinterest in the cryptocurrency is actually a bullish development.
You find that periods of extremely low mood are typically followed by sharp upward movements. As such, Ethereum could soon confirm its recent lows as a long-term low and begin moving higher.
“#Ethereum’s social volume is approaching a 6-month low on all social discourse platforms as traders look elsewhere for volatility to trade. However, assets like ETH usually see the greatest buying opportunities when the masses are disinterested, ”they explained, pointing to the chart below.
Image courtesy of Santiment.
Where Ethereum trends are likely to depend largely on Bitcoin in the coming days and weeks.
Any further BTC turbulence could deal a major blow to ETH, sending it back towards its recent lows of $ 315.
Featured image from Unsplash. TradingView pricing data.