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After reclaiming the $130 level earlier this past week, Ethereum (ETH) is currently struggling to hold above this level as bears attempt to take full control of the aggregated cryptocurrency markets.
It is important to note that ETH’s current bearishness could cut deeper in the near-term, but analysts are noting that the cryptocurrency’s current price action looks strikingly similar to that seen by Bitcoin when it was trading within the lower-$3,000 region in late-2018 and early-2019.
If this similarity is valid, Ethereum could be on the verge of incurring a significant amount of upwards momentum that potentially leads the crypto into a multi-month bull market throughout the early part of 2020.
Ethereum’s Bulls Struggle to Hold ETH Above $130 as Selling Pressure Ramps Up
At the time of writing, Ethereum is trading down marginally at its current price of $131, which marks a notable decline from its multi-day highs of over $137 that were set this past weekend.
It is important to note that although the cryptocurrency was rejected in the upper-$130 region concurrently with Bitcoin’s rejection at $7,500, ETH is still trading up significantly from its weekly lows of $125.
The $120 to $125 area is a key support region for the cryptocurrency, as $120 is where it bounced during its recent capitulatory sell off, and $125 is a level that bulls ardently defended for the past couple of weeks.
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes today’s slight ETH sell-off may be fleeting, as it swept its range lows and was able to post a bounce at this level.
“$ETH short update: May have gotten shaken out here, more setups to come. Closed for the same reason as the BTC short. The correlation with BTC and ETH led me to believe we’d push up after Monday’s low getting swept on BTC. +1.24R (before fees),” he explained while pointing to the chart below.
$ETH short update
May have gotten shaken out here, more setups to come. Closed for the same reason as the BTC short. The correlation with BTC and ETH led me to believe we'd push up after Monday's low getting swept on BTC.
+1.24R (before fees) pic.twitter.com/d6E3LplBSl
— HornHairs 🌊 (@CryptoHornHairs) December 31, 2019
Could ETH Be Bound for a Massive Multi-Month Rally?
Gat, a popular crypto analyst on Twitter, explained in a recent tweet that he believes Ethereum’s price action over the past couple of months looks strikingly similar to that seen by Bitcoin in late-2018 and early-2019 when it was trading in the lower-$3,000 region.
“As much as I hate $ETH, it is giving $BTC 3k kinda vibes,” he explained while pointing to the two charts seen below.
As much as I hate $ETH, it is giving $BTC 3k kinda vibes. pic.twitter.com/K7O3nT1UnY
— Gat🔺🥛🍼 (@TheGemClub) December 31, 2019
If this correlation does prove to be valid, Ethereum could see some strong upwards momentum in the early part of 2020, potentially allowing it to post massive gains.
Featured image from Shutterstock.
