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Ethereum Stabilizes Above $170 as Indicator Predicts Further Upside

Avatar Cole Petersen 2 months ago

Ethereum (ETH) has posted a strong bounce from its recent lows and has not yet faced any notable rejection after climbing from these lows. This slight upwards momentum has come about as Bitcoin finds increasing stability around the $8,000 region.

Analysts are now noting that Ethereum could incur massive upside in the future, although other analysts are also explaining that ETH may further extend its recently incurred downwards momentum in the short-term.

Ethereum Stabilizes Above $170

At the time of writing, Ethereum is trading up nearly 5% at its current price of $173, which marks a notable surge from its recent lows of under $160 that were set earlier this week concurrently with Bitcoin pushing below the $8,000 region.

ETH’s ability to surge from these lows signals that the crypto does have some underlying bullishness, but it is important to note that it is still trading down significantly from its recent highs of over $220.

In the near-term, analysts still believe that ETH may incur further bearishness, as Horn Hairs – a popular cryptocurrency analyst on Twitter – recently explained that the crypto is currently pushing up against a significant resistance zone that is likely to force it lower in the near-term.

“$ETH inverse weekly chart: What in God’s name makes you ‘bullish’ here? People calling for lower feels a lot like when people call altseason when we get a bearish retest into resistance,” he explained in a recent tweet.

Macro Outlook Looks Very Positive for ETH

Although in the near-term Ethereum could drop significantly further as it pushes into its next key resistance zone, its macro-outlook is still quite bullish, as one technical indicator points to the possibility that ETH will ultimately surge to highs of $3,300.

BitcoinEconomics spoke about what the Bitcoin Economics Adaptive Multiple (BEAM) shows when it is applied to Ethereum’s price action, which may be a very positive thing for ETH’s investors.

“BEAM also works with Ethereum. It even says we reentered a buy zone. It predicts a minimum of $3300 for the next ATH of Ethereum. Same false sell signal in mid 2017 as for Bitcoin in April 2013,” they noted while pointing to the below chart.

Assuming that Ethereum is unable to break above its near-term resistance level, it may further extend its recently incurred downwards momentum, but it is imperative to keep in mind that the crypto’s macro outlook still looks incredibly bullish.

Featured image from Shutterstock.
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