Ethereum has been closely tracking Bitcoin’s price action over the past several days and weeks, which has led ETH to incur overwhelmingly bearish price action. However, BTC’s bullish response to an overnight dip has similarly allowed ETH to begin forming some potentially bullish technical formations.
This tempered bullishness comes about concurrently with recent news regarding cryptocurrency exchange UPbit being hacked for 342,000 ETH, which appears to have not fazed the crypto’s buyers.
Ethereum Finds Strong Support in Lower-$140 Region, But Resistance Remains Strong
ETH’s price was able to post a strong and swift recovery from these levels overnight, however, with bulls leading it as high as $150 before it settled to its current price levels.
This price action has been incredibly correlated to Bitcoin’s, as BTC similarly incurred a sharp and fleeting overnight sell-off that ultimately allowed it to climb higher until it met resistance at $7,400.
In the near-term, $150 does appear to be a resistance level for Ethereum, as it has been rejected at this price level on multiple occasions over the past several days.
One bearish fundamental development that could have some sway on the cryptocurrency’s near-term price action is the recent UPbit exchange hack, in which the hackers stole a total of 342,000 ETH.
Although the exchange is going to cover any investor losses, the hackers selling this ETH could provide a steady stream of downwards pressure on the embattled cryptocurrency.
Joseph Young, a popular figure within the cryptocurrency industry, spoke about this hack in a recent tweet, saying:
“UPbit made an official statement. All transactions apart from Ethereum were transfer of funds to UPbit’s cold wallet. 342,000 ETH was sent to an unknown wallet. UPbit says it will cover for it with corporate funds. ($51.3 million). It says only ETH is an irregular transaction.”
UPbit made an official statement.
All transactions apart from Ethereum were transfer of funds to UPbit's cold wallet.
342,000 ETH was sent to an unknown wallet. UPbit says it will cover for it with corporate funds. ($51.3 million)
It says only ETH is an irregular transaction.
— Joseph Young (@iamjosephyoung) November 27, 2019
Will ETH Soon Incur Short-Term Gains in Spite of UPbit Hack?
Josh Olszewicz, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes ETH could surge up to $165-175 in the near-term, as it forms a bullish inverse head and shoulders pattern similar to that currently being formed by BTC.
“4h $ETH: similar iHS forming w/desc vol prof. entry > 152. SL = below R shoulder. TP = 165-175. 150-160 = long term resistance turned support and now possibly turned resistance. HF likely coming in a few days,” he noted while referencing the chart seen below.
similar iHS forming w/desc vol prof
entry > 152
SL = below R shoulder
TP = 165-175
150-160 = long term resistance turned support and now possibly turned resistance
HF likely coming in a few days pic.twitter.com/IOaSdxITfP
— Josh Olszewicz (@CarpeNoctom) November 26, 2019
How Bitcoin trades in the near-term will likely have significant influence on whether or not Ethereum is able to see any further bullishness in the near-term.
Featured image from Shutterstock.