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Ethereum has been holding up quite well against Bitcoin despite seeing some slight weakness throughout the past week after facing a harsh rejection at its local highs of $255.
The cryptocurrency now appears to be well-positioned to see further upside in the near-term, as analysts are noting that it has been able to form a strong market structure over the past few weeks
It is important to note that this doesn’t mean that ETH won’t see some near-term downside, as one trader is noting that its key near-term support sits at roughly $215.
As such, this may be the price region at which the cryptocurrency needs to plunge to before garnering enough upwards momentum to rally significantly higher.
This pending uptrend could also be bolstered by strength that the cryptocurrency has flashed on its BTC trading pair.
Ethereum Guards Against Seeing Further Downside as it Enters Consolidation Phase
At the time of writing, Ethereum is trading up just under 1% at its current price of $243. This is around the level it has been trading at throughout the past several days in the time following the turbulence seen earlier this week.
The cryptocurrency rallied to highs of $255 this week before facing a rejection that sent it down to lows of $230.
Buyers guarded against a decline beneath this level, subsequently helping the crypto to rally back up to its current price region.
Despite being down only a hair from its local highs, it is still down significantly from highs of $290 that were set in February of this year.
One popular cryptocurrency analyst explained that he believes ETH’s mid-term outlook is bright, but that it may first need to decline towards $215 before rallying higher.
The trader notes that a break above $200 will likely be enough to spark an uptrend that leads it to $300.
“Ethereum: Overall looking great. I’d prefer to see some more consolidation (just like the push towards $215). In that regard, $215-220 is a potential zone for longs. In general, as long as green holds, I expect further continuation with potential targets of $300.”
ETH Also Flashes Signs of Strength Against BTC
Today Ethereum is outperforming BTC by over 1%, although it has been closely tracking the benchmark cryptocurrency throughout the past several days.
The aforementioned analyst also believes it could be positioned to see serious upside against Bitcoin due to it maintaining above its 100-day and 200-day moving average.
“ETH… acting above the 100-Day and 200-Day MA. Does that mean that ETH is doomed to go down? No, it’s looking quite good. Green needs to hold,” he said while pointing to the levels marked on the below chart.
He also added that it holding the green box seen about could help lead its USD trading pair up to $300.
Featured image from Shutterstock.
