In spite of the bullishness of this rally, it is important to note that analysts are still explaining that ETH is in a corrective phase and may be on the cusp of incurring another massive drop that could send it as low as $80 in the near-term.
Ethereum Outperforms Bitcoin as It Fast Approaches Another Key Resistance Level
At the time of writing, Ethereum is trading up nearly 4% at its current price of $139, which marks a notable climb from its recent lows of $126 that were set last week when the aggregated crypto market incurred a sharp sell off.
Ethereum’s recent climb has been perpetuated by the momentum Bitcoin has found in the time since its drop to $6,800, and the aggregated crypto market is showing some signs of potentially forming a long-term bottom.
This recent bullishness has allowed ETH to climb towards where it was trading at in mid-December prior to its capitulatory sell-off that sent it as low as $120.
Livercoin, a popular analyst on Twitter, explained in a recent tweet that he believes that ETH may soon incur a massive sell-off that sends it reeling lower, as it is currently trading within a bearish technical pattern.
“Sure, this rally is pretty but I don’t see a reason to be HTF bullish on USD pairs just yet. On $ETH, price is forming a “corrective” consolidation and there is a big chance that we will dump again after filling the weekly price inefficiency. Stay safe bros,” he explained.
Sure, this rally is pretty but I don’t see a reason to be HTF bullish on USD pairs just yet.
On $ETH, price is forming a “corrective” consolidation and there is a big chance that we will dump again after filling the weekly price inefficiency.
Stay safe bros pic.twitter.com/ZK7VBuO1HZ
— Livercoin (@livercoin) January 5, 2020
Where Will This Next Drop Lead ETH?
DonAlt, another popular crypto analyst on Twitter, explained in a recent tweet that he believes Ethereum is currently range bound within a massive trading range, with an upside target of $260, and a downside target around $80.
“$ETH Time to play the range,” he explained while pointing to the chart seen below.
$ETH
Time to play the range. pic.twitter.com/I5EFZpG6Tt
— DonAlt (@CryptoDonAlt) January 1, 2020
If the pattern discussed by Livercoin does prove to be valid, it is highly possible that ETH will soon find itself caught within a violent downtrend that causes it to form fresh multi-month lows.
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