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Ethereum has been one of the best performing major cryptocurrencies throughout 2020, with ETH posting a massive rally that sent it from yearly lows of $120 to highs of just under $230.
This intense uptrend has allowed the crypto to form a highly bullish market structure, and its ability to hold above $225 over the past couple of days seems to suggest that ETH is about to see significantly further momentum.
One analyst is noting that this momentum may extend until Ethereum hits its next key resistance level at $360, with a rise to this level marking a 60% rally from its current price levels.
Ethereum Holds Above Key Support as Market Structure Grows Bullish
At the time of writing, Ethereum is trading up just under 2% at its current price of $228, which marks a notable climb from its daily lows of $222.
While looking at ETH’s weekly price action, it becomes crystal clear as to just how bullish the cryptocurrency is, as it has been able to rally from lows of $185 to highs of $230.
Although $230 does appear to mark some near-term resistance for the cryptocurrency, how it responds to this level in the near-term could depend on whether or not Bitcoin – which has been leading the markets – is able to hold above its newfound position at $10,000.
Nik Patel, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent blog post, explaining that $230 is a previous support level for the crypto that has now become resistance.
“Over the past couple of weeks, price has also closed strongly back above the 200MA and 360MA and is now at prior support turned resistance ~$230. I could see Ethereum taking a breather here, if only to retest trendline support and the double top at $200 as new support,” he explained.
Will a Break Above $230 Send ETH Straight to $360?
If Ethereum is able to surmount the slight resistance it is currently facing at $230, it is highly likely that the crypto will continue climbing higher until it reaches its critical resistance at $360.
“The reversal from here has been phenomenal, with Ethereum doubling in price since. Price has also broken out above trendline resistance from the June 2019 high and looks set to close the Weekly above both the $200 and $225 swing-highs, turning market structure bullish and opening up a move to retest $360,” he noted.
How ETH trends in the coming few hours and days may depend on Bitcoin, but its highly bullish market structure may ultimately allow it to garner momentum independent of BTC and the aggregated crypto market.
Featured image from Shutterstock.
