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A Visit to This Level Could Send Ethereum on a Face Ripping Rally

Avatar Cole Petersen 3 weeks ago

Ethereum (ETH) has found itself caught within a firm upwards trend over the past month, which has come about in tandem with the uptrend seen by the aggregated crypto markets throughout 2020.

This momentum reached a boiling point yesterday evening when Bitcoin rallied to fresh 2020 highs of $9,500 before finding some resistance, which in turn lead most major altcoins to also post decent gains.

This market-wide bullishness maybe opening the gates for Ethereum to see a significant upwards movement in the near-term that could lead it back up towards its previously established all-time highs.

Ethereum Gains Foothold Within the $170 Region as Markets Show Overt Bullishness

At the time of writing, Ethereum is trading up just under 3% at its current price of $176, which marks a notable climb from its daily lows of under $170 that were set just prior to the crypto’s massive upwards movement.

In the near-term it does appear that ETH will closely track Bitcoin’s price action, as it has struggled to garner any independent momentum throughout the year.

As for where Ethereum’s near-term support currently exists, analysts are closely watching to see how it responds to $172, as a visit to this level could catalyze a notable rally that leads to crypto to post sizeable gains.

“ETH: I will be looking to buy the dip around $172 if it presents itself. Confluent level of monthly support (Sep. Open), weekly support (S/R flip), & 1D bullish breaker after a sweep at the lows.  If we drop from here the equal highs just below resistance will be the target,” HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet.

Could ETH Soon Rally Towards $1,000?

If the markets do see further upwards momentum and Ethereum’s bulls continue to defend the support at $172, it is possible that the crypto could garner enough momentum to break through its resistance at $190 – with a break above this level potentially leading ETH to move towards $870.

CryptoWolf – a popular cryptocurrency analyst on both Twitter and TradingView – mused this possibility in a recent chart on TradingView, in which he points to the two key resistance levels mentioned above.

Ethereum ETH

Image Courtesy of CryptoWolf

How the markets trend in the coming few days will likely provide insight into whether or not this latest movement is more than just another lower-high, and if major altcoins like ETH could soon inch back towards their previously established all-time highs.

Featured image from Shutterstock.
Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has covered bitcoin and the crypto markets since 2017.

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