Ethereum has stayed below $ 380 for the past few days, which is a critical level that has long had a serious impact on the overall crypto market.
If it stays below this level, it could be a sign that the bulls are losing their advantage over the asset and that another downward move is imminent.
ETH’s near-term outlook appears to remain largely correlated to Bitcoin, as the benchmark cryptocurrency has given the altcoin market a solid orientation lately.
This is not a bad thing as BTC is stable around $ 11,500 and may get stronger as the bulls aim to break through their $ 11,600 resistance.
In the short term, the ETH bulls will have to break the USD 380 level and confirm it as support. This gives the crypto a strong base of support that could help bring it significantly higher in the coming days and weeks.
An analyst stated in a recent tweet that there are some catalysts in the short term that could give him a serious uptrend, including the launch of ETH 2.0 in Phase 0 and a higher high and low on top of his 715-day range breakout.
Ethereum shows signs of strength as bulls target $ 380
At the time of writing, Ethereum is trading just under 2% at its current price of $ 375. This is roughly what it has been trading at for the past few days and weeks.
Bears recently attempted to push them below $ 370 but the buying pressure has been quite strong here and contributed to a strong rebound.
Where it does in the medium term will likely depend largely on whether or not the bulls can break the $ 380 mark.
This level has proven to be crucial in the past and is likely to continue to determine Ethereum’s near-term prospects.
Here are the three catalysts that could affect ETH in 2021
An analyst stated that there are three fundamental and technical catalysts that are likely to affect Ethereum price action in the coming months. They are all openly bullish.
“ETH Notes on Chart: 2.0 Coming. HH + HL in addition to 715 days break in range. PoB to ATHs … you are bearish? “
Image courtesy of Pentoshi. Source: ETHUSD on TradingView.
How the Ethereum trends go into 2021 will undoubtedly depend somewhat on Bitcoin.
This makes it vital for ETH that BTC can break through its macro-consolidation phase and soar higher in the coming months.
Featured image from Unsplash. TradingView charts.