From the bottom seen during the “Black Friday” crash, the cryptocurrency is up well over 100% — outperforming a majority of multi-billion-dollar assets, even those that were bailed out by the world’s governments.
Related Reading: Last Time This Trend Transpired, Bitcoin Rallied 2,700%. It’s Back Yet Again
Despite this decisively strong price action, an analyst is not yet convinced Ethereum bulls are home free, so to say, remarking that a key level needs to be breached for a trend reversal to be confirmed.
Ethereum Still Below Key Technical Level
An impressive rally, sure, but a crypto trader known as Calmly isn’t too sure that a bullish medium-term future for Ethereum is certain after the recent rally.
Backing his cautious sentiment, he shared the below image on April 18th, indicating that he thinks a weekly close above $190 “would make [him] feel confident that this is bullish price action and not just a bear market re-test.”
The chart specifies that historically, $180-$190 has been a crucial zone for Ethereum, with it acting as a launchpad for rallies. Furthermore, the cryptocurrency has often tested the zone as resistance on multiple occasions.
Analysts Eye Breakout
Although $190 is still a 5% rally away, leading analysts expect for the cryptocurrency to start attempting to break past the region.
Prominent trader Hsaka remarked that the ongoing price action has allowed Ethereum to break a “pivotal zone,” which suggests that the cryptocurrency will see “substantial” bullish follow-through towards $200.
Corroborating this, another trader with the moniker of HornHairs explained that he thinks ETH may be in the midst of a “full retrace” of the bear market, which would imply a return back to the 2020 highs of $290 in the coming months.
Not to mention, there are simple positive fundamental factors.
A report from Grayscale Investments, a crypto fund provider and manager, shared that institutional players are investing heavily into both Bitcoin and Ethereum, despite the recent downturn in global markets. As investor Spencer Noon said:
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest @GrayscaleInvest report: Ethereum Trust saw $110M in Q1 inflows. This is more than all of its previous inflows combined for the past 2 years ($95.8M).”
Furthermore, it has been reported by crypto analytics firms that Ethereum’s blockchain is seeing increasingly higher throughput volumes, boding well for the bullish narrative.
Photo by Jerry Zhang on Unsplash