Ethereum has seen some hugely positive price moves in the past few hours, with bulls catalyzing a rally that took its price to highs of $ 380 just a few hours ago.
However, it encountered strong resistance in this price region and subsequently plunged towards USD 360. After recovering from these lows, it now appears that ETH is on a consolidation spurt.
Where it goes next will likely depend primarily on Bitcoin, as the benchmark cryptocurrency has struggled to break above $ 10,400 in the past few hours. If it makes a solid breakthrough above this level, it will likely generate tailwinds that will also lift ETH upwards.
An analyst now notes that the next cryptocurrency trends may largely depend on whether they can break out of a crucial level that was previously strong support for the cryptocurrency prior to its recent decline.
If this level is overcome and confirmed as support, it could trigger an uptrend that will allow ETH to rebound to new highs for the year.
Ethereum is showing signs of strength as Bitcoin continues to defend $ 10,000
At the time of writing, Ethereum is trading over 5% at its current price of $ 370. This marks a slight decline from the daily highs of $ 380 briefly tapped this morning.
This recent upswing paralleled that of Bitcoin, when BTC was able to jump from $ 10,000 to $ 10,500 before facing some selling pressure that pushed it back below $ 10,400.
It is now trying to stabilize above this price level as this could allow further gains.
Where BTC trends are likely to have a big impact on Ethereum in the near future.
Analyst: ETH will remain firmly bearish as long as it trades below a key level
One analyst gave Ethereum a somewhat bearish outlook, stating that its market structure is strongly bearish as long as it trades below around $ 380.
This level was previously a strong support for ETH, so it would be gloomy not to regain this level.
“A pretty clear signal here at ETH, a key level is currently being tested. The market structure is clearly bearish if not restored. Although trades can be made either way, depending on how it is resolved. “
Image courtesy of Lucid. Chart over TradingView.
How Ethereum trends should provide investors with vital insight into its macro outlook for the hours and days ahead.
Featured image from Unsplash. TradingView charts.