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Ethereum has incurred some decent upwards momentum today after Bitcoin’s bulls generated some buying pressure that allowed the crypto to surge past $8,500. ETH still remains stuck within the $160 region, but it is looking increasingly likely that it will soon climb higher.
One factor that could make ETH particularly attractive to investors at this time is the fact that it has been able to incur significantly strong fundamentals so far this year, which will likely bolster its near-term price action.
Another bullish factor is that Ethereum is fast approaching a critical price level that, if broken above, could validate the immense bullishness of its market structure and open the gates for significantly further gains.
Ethereum’s Fundamental Strength Just Keeps Growing
At the time of writing, Ethereum is trading up over 3% at its current price of $166, which marks a notable climb from its daily lows of just over $160 that were set early in the day yesterday.
ETH has been ranging within the $160 region for the past seven days, and its one dip below $160, which occurred two days ago, was quickly met with significant buying pressure that allowed it to climb higher.
In the near-term, it does appear to be increasingly likely that the crypto makes a bid at breaking into the $170 region, although there is some selling pressure at this level that could halt its uptrend.
It’s next major bout of upwards momentum could be driven by bolstered fundamentals, which have grown increasingly strong over the past few weeks.
“The number of ETH locked in #defi is up 8.33% over the past 30 days, $eth price is up 34.7% while the ETH/BTC ratio is up 11.35% & $btc price is up 16.39% over that same period of time. Ethereum is now in a phase where it is outpacing Bitcoin price gains,” John Lilic, a member of ConsenSys, explained in a recent tweet.
https://twitter.com/JohnLilic/status/1221218380876783620?s=20
Analyst: $200 is the Level ETH Needs to Break Above for a Massive Rally to Commence
Nik Patel, a prominent cryptocurrency analyst, shared his thoughts on Ethereum in a recent blog post on his site, in which he explains that ETH needs to break above $200 in order for a massive rally to kick off.
“Looking at ETH/USD on the Weekly timeframe, we can see a breakout of trendline resistance that occurred last week, although volume hasn’t quite shown up yet. I am particularly interested in $200, above which weekly market structure will turn bullish,” he noted.
It remains unclear if Ethereum’s fundamental strength will be enough to push it above this level, but it is highly probable that a strong movement into the $200 will catalyze significantly further upwards momentum.
Featured image from Shutterstock.
