Ethereum’s price has been hovering around the lower $190 region in the time following its latest selloff that sent it to lows of $180.
The second-largest cryptocurrency by market cap has been severely underperforming Bitcoin in recent times and has virtually erased all of the gains that came about as the result of its recent push to highs of $230.
This decline also led the crypto to break below a massive ascending wedge pattern that it was previously caught above, and it now appears to be entering a flag pattern as it consolidates.
In spite of this overt bearishness, it is important to note that the cryptocurrency could still see a parabolic push to highs of $290 in the weeks ahead. There are a few key levels bulls must surmount in order for this possibility to come to fruition.
Ethereum Enters Flag Pattern as Consolidation Phase Persists
At the time of writing, Ethereum is trading up just over 2% at its current price of $190. This is around the level at which it has been trading at in the time following its sharp decline to lows of $180 yesterday.
In the time following its break below $200 last week, it has largely been consolidating around its current price level.
Whether or not it is able to push higher in the near-term may be largely dependent on whether Bitcoin breaks back above $9,000.
It is possible that BTC will continue underperforming BTC in the days and weeks ahead – a trend seen throughout the past several weeks that has proven to be dire for the cryptocurrency.
Ethereum’s recent weakness led it to break below the lower boundary of a large ascending wedge that it had previously been caught within.
It now appears that it has entered a flag pattern that has yet to resolve.
One analyst spoke about this in a recent tweet, pointing to a chart showing a flag that is forming with an upper boundary at $192 and a lower boundary at $179.
Here’s Why $290 is Still in the Cards for ETH
In a recent blog post, another well respected trader explained that the short-term outlook for ETH is rather grim, with a decline towards $150 being likely.
In spite of this, he also notes that if the crypto pushes above $195 and begins garnering some upwards momentum, it could soon test a key pivot point at $228.
A break above this level is all that’s needed to spark a rally to $290, he claims.
“If we do start to see price push back above [$195], I would then look for a higher-high to form, reverting market structure to bullish… Such a move would also take us above the important pivot at $228, which would likely lead to a swift retest of the high at $290,” he said.
Featured image from Unplash.
