Ethereum’s price action has been closely tracking that of Bitcoin over the past several days, and ETH has been able to post a strong recovery from its recent drop to below $185.
Analysts are now noting that Ethereum’s ability to break above the key resistance level of $200 may be emblematic of a shifting short-term trend, which may mean that it will be able to continue climbing higher in the coming days and weeks.
Ethereum Reclaims Position Above $200 After Finding Strong Support at $185
At the time of writing, Ethereum is trading up over 2% at its current price of $200.85, which marks a significant increase from its recent lows of $180 that were set at the time when Bitcoin faced a sharp sell-off that sent it reeling to lows of $9,500.
After tapping $180 last Wednesday, however, ETH was able to swiftly recover to $185, which persisted as a strong level of support until yesterday, which is when the crypto began incurring some upwards momentum that has led it towards its current price levels.
Today’s upwards momentum came about as the aggregated crypto market posted a strong recovery, with Bitcoin climbing towards the upper-$10,000 region while many other cryptos were able to climb 2-3%.
Another bullish piece of news that may have helped ETH climb today is that Japanese e-commerce giant Rakuten is launching a cryptocurrency exchange that supports Bitcoin, Ethereum, and Bitcoin Cash.
“BREAKING: Rakuten publicly launches crypto exchange; currently supports BTC, ETH and BCH,” Mia Tam noted in a recent tweet.
BREAKING: Rakuten publicly launches crypto exchange; currently supports BTC, ETH and BCH.
— Mia Tam (@blockandchain) August 19, 2019
Will ETH Continue Climbing Higher in Week Ahead?
Ethereum’s ability to surge to $200 today may be emblematic of improving technical conditions for the cryptocurrency, as Jacob Canfield – a popular crypto analyst on Twitter – explained in a recent tweet that it marked an upwards break of a downwards trend line on a short time frame.
“A lot of people are asking me about ETHBTC. #ETH / #Ethereum / $ETH Daily – Broke downtrend resistance yesterday. Hasn’t made a higher high. Below. Key S/R level at .025 that needs to be reclaimed. Weekly – Very narrow range back to 2016 levels that needs to hold,” he explained while referring to the below charts.
https://twitter.com/JacobCanfield/status/1163450223768850437
Although in the short-term it does seem as though ETH may incur some further bullishness, it is important to note that its mid and long-term price action does appear to remain somewhat bearish, and a failure to follow through and extend today’s upwards momentum could lead to further losses.
Featured image from Shutterstock.
