The aggregated crypto markets have been firmly locked in an upwards trend over the past several weeks, mainly due to Bitcoin’s series of surges that brought it from recent lows of roughly $4,000 to highs of $8,400. This surge has allowed other cryptocurrencies, including Ethereum (ETH), to also put some distance between their current prices and their recent lows.
Although the market conditions have improved significantly as a result of this upwards momentum, in order for Ethereum and other cryptos to climb higher, it is critical that BTC continues climbing higher and breaks into the $8,000 region.
Ethereum (ETH) Must Break Above Resistance at $260 to Surge Towards $300
At the time of writing, Ethereum is trading up 1.5% at its current price of $255, up slightly from its daily lows of $250 which were set earlier today. Over the past several days, ETH has been able to hold above $250 on several occasions, which may signal that this is a level of support for the crypto.
While looking at Ethereum’s chart over the past month, it has been able to surge from lows of $155 to highs of $275, before dropping slightly and stabilizing at its current price levels.
Whether or not ETH continues surging higher in the near-future likely depends most on whether Bitcoin is able to break above the lower-$8,000 region, which has proven to be a level of resistance for the cryptocurrency.
Mayne, a popular cryptocurrency analyst on Twitter, spoke about both Bitcoin and Ethereum in a recent tweet, noting that BTC needs to hold above $7,884, and ETH needs to break through $260 in order for the two cryptos to further extend their upwards momentum.
“$BTC – Need to hold $7884 and red OB for upside target $9k+. Break below red OB I expect $7300 and maybe lower to $6400. $ETH – USD pair needs to break and close thru $260 to get to $300. BTC pair had a nice reaction of range low if we can hold EQ and flip grey OB looks good,” he explained.
$BTC – Need to hold $7884 and red OB for upside target $9k+. Break below red OB I expect $7300 and maybe lower to $6400.$ETH – USD pair needs to break and close thru $260 to get to $300. BTC pair had a nice reaction of range low if we can hold EQ and flip grey OB looks good. pic.twitter.com/erC1aiDmwH
— Mayne (@Tradermayne) May 22, 2019
ETH’s Golden Cross May Lead it to Surge Higher
Recently, multiple traders and analysts on Twitter noted that Ethereum had formed the coveted golden cross pattern, which typically results in an extension of an asset’s momentum.
TheCryptoCactus, a cryptocurrency trader, recently told his nearly 6k followers that he believes the recent golden cross pattern could help ETH surge towards $300.
“$ETH just confirmed golden crossover, could be trading above $300 real soon,” he explained.
$ETH just confirmed golden crossover, could be trading above $300 real soon…
— Cactus (@TheCryptoCactus) May 21, 2019
Although there is some controversy surrounding the utility of golden cross formations as a predictor of future price action, the technical formation is certainly emblematic of the extremely positive price action ETH has incurred in recent times.
As Bitcoin continues battling to gain control of the lower-$8,000 region, it is highly probable that Ethereum will continue consolidating around its current price levels.
Featured image from Shutterstock.