Ethereum (ETH) has been closely tracking the price action of Bitcoin and most other major altcoins over the past several days, but it appears that it is beginning to establish its own momentum as it climbs towards $180.
It is important to note that analysts are warning investors to not get too excited about this movement, as a recent bearish technical formation could spell trouble for its near-term price action.
Ethereum Surges Towards $180 as Crypto Markets Consolidate
At the time of writing, Ethereum is trading up over 2% at its current price of $178.20, which marks a notable climb from its daily lows of $172 that were set overnight.
It is imperative to note that ETH has been recently facing an extended bout of sideways trading that appeared to stem primarily from Bitcoin’s consolidation within the lower-$8,000 region.
Over a one-week period, Ethereum has been trading between range lows of roughly $167 and range highs of $185, with the crypto finding significant support around its range lows, and resistance around its range higher.
As it incurs further upwards momentum throughout the day, analysts and traders alike should closely watch to see how it responds to the lower-$180 region, as this has proven to be an area of relative resistance for the cryptocurrency.
Bitcoin has been able to climb marginally today but is still hovering right around its critical support level of $8,200, and it is highly likely that Ethereum’s current upwards momentum will be largely or entirely based on Bitcoin’s ability to continue trading sideways or to begin climbing higher.
ETH May Face Further Bearishness in Near-Term
Despite its current momentum, analysts are still weary on ETH’s near-term price action, as The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she expects the crypto to face some downwards pressure in the near-term as it recently broke below a rising wedge it was trading within.
“$ETH Broke down as mentioned last week. Hope you took profits or move SL in profits. With double bottom on support I do expect a re-test to commence,” she noted while pointing to the below chart.
Broke down as mentioned last week
Hope you took profits or move SL in profitsWith double bottom on support I do expect a re-test to commence pic.twitter.com/nA6Q7cXCr0
— The Cryptomist (@TheCryptomist) October 4, 2019
It remains unclear as to whether or not its recent climb to over $178 marks an invalidation of its recent downtrend, but it is highly probable that ETH’s near-term trend will be determined by how it trades going into the weekend trading session.
Featured image from Shutterstock.
