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Ethereum is currently in the process of consolidating following its immense uptrend seen throughout the past couple of days.
The cryptocurrency is showing some signs of strength as it trades within the $270 region.
It is a strong possibility that the two assets will remain closely correlated in the days and weeks ahead, which means that ETH may not be able to push any higher until Bitcoin can shatter the massive resistance it faces within the upper-$9,000 region.
One analyst is also noting that Ethereum is currently pushing up against a substantial resistance level as well.
The historical significance of this level makes it imperative that buyers push through it.
A clean break above it could be enough to send it surging up towards $1,000 – according to one analyst who forecasted its latest swing higher.
Ethereum Shows Signs of Strength Despite Entering a Consolidation Phase
At the time of writing, Ethereum is trading down marginally at its current price of $275. This is around where it has been trading at in the time following its rejection at $280 that was seen yesterday.
It now appears that the digital asset could be poised to see further upside in the days and weeks ahead, as its latest rally allowed it to smash multiple key resistance levels.
This movement has also allowed ETH to form what one analyst is describing as the “most bullish HTF candle” that it has formed over the past two years.
If it can hold above this level as its weekly close fast approaches, then it may be able to launch up towards $500.
“I would argue, this is the most bullish HTF structure/candle we have seen in the past 2 years for ETH… Weekly close up here and I think $400/500 is highly likely.”
Image Courtesy of Cactus. Chart via TradingView.
Because weekends tend to be quiet for ETH and the aggregated crypto market, there’s a strong chance that it will be able to close its weekly candle around its current price level.
Here’s the Key Resistance that Could Spark a Move to $1,000
The same analyst also noted that Ethereum is currently pushing up against the top of a long-held trading range.
Because the resistance here is quite intense, a break above this level could place ETH firmly in the throes of a full-fledged bull market. He even notes it could lead it as high as $1,000.
“ETH: Please be careful filling fresh leveraged longs at this level. If this breaks and flips… we’re going to $1000.”
Image Courtesy of Cactus. Chart via TradingView.
Because its potential parabolic rally rests on its reaction to this one crucial resistance region between $270 and $300, how it closes this weekly candle will be critical for understanding Ethereum’s mid-term outlook.
Featured image from Unsplash. Charts via TradingView.
