Ethereum (ETH) incurred a significant amount of upwards momentum yesterday that came about after the aggregated altcoin market posted some decent gains that led many cryptos to surge 5% or more.
Importantly, this surge may ultimately be fleeting, as one analyst is noting that ETH has “fake pumped” on multiple occasions as of late, with each pump being followed by lower lows.
Ethereum Surges Past $180
At the time of writing, Bitcoin is trading up nearly 5% at its current price of $182.45 and is up significantly from its daily lows of just over $170 that were set yesterday.
This explosive movement upwards led ETH to highs of just under $185, which was a previous level of major support for the crypto that has likely flipped into a resistance level. As it slowly approached this level, it is highly likely that any movement above this level could lead to a swift rejection or could spark a short-term uptrend.
The Crypto Dog, a popular cryptocurrency analyst on Twitter, recently spoke about ETH, noting that it is currently trading within a falling wedge that could lead it to surge significantly higher in the near-term.
“$ETH / $USDT: Weekly chart doesn’t get much cleaner than that,” he explained while pointing to the below chart.
Weekly chart doesn't get much cleaner than that. pic.twitter.com/q9j6db7FL3
— The Crypto Dog? (@TheCryptoDog) September 7, 2019
Is ETH’s Current Pump a “Fake-Out”
It is important to note that the recent surge in the altcoin markets has not been driven by Bitcoin’s price action, which could signal that this latest movement will be fleeting, especially if BTC begins moving lower in the near-term.
Josh Rager, another popular analyst, explained in a recent tweet that Ethereum has “fake pumped” on multiple occasions as of late, which could mean that this movement towards $185 will ultimately result in lower lows for the crypto.
“$ETH: What’s confirmation? How about price actually breaking and holding the 20 MA for once. Buyers have been pump-faked by ETH more than a Harlem Globetrotters basketball game,” he noted.
$ETH: What's confirmation?
How about price actually breaking and holding the 20 MA for once
Buyers have been pump-faked by ETH more than a Harlem Globetrotters basketball game pic.twitter.com/HsT3iBRXBR
— Josh Rager ? (@Josh_Rager) September 7, 2019
As Bitcoin continues to react to its current position in the mid-$10,000 region, it is highly probable that analysts and investors alike will soon garner greater insight into whether or not the recent surge amongst altcoins is fleeting, or emblematic or an imminent “altseason.”
Featured image from Shutterstock.