Ethereum has seen some intensely positive price action in recent hours, with bulls catalyzing an upswing that led its price to highs of $380 just a couple of hours ago.
It did face some intense resistance at this price region, however, and subsequently plunged towards $360. After rebounding from these lows, it now appears that ETH is caught within a bout of consolidation.
Where it trends next will likely depend mostly on Bitcoin, as the benchmark cryptocurrency has been struggling to break above $10,400 throughout the past few hours. If it does post a firm break above this level, it will likely create a tailwind that lifts ETH higher as well.
One analyst is now noting that where the cryptocurrency trends next may depend mainly on whether or not it can break above one crucial level that was previously strong support for the crypto before its recent decline.
If this level is surmounted and confirmed as support, it could create an uptrend that allows ETH to rally to fresh yearly highs.
Ethereum Shows Signs of Strength as Bitcoin Continues Defending $10,000
At the time of writing, Ethereum is trading up over 5% at its current price of $370. This marks a slight decline from daily highs of $380 that were briefly tapped earlier this morning.
This latest upswing came about in tandem with that seen by Bitcoin, as BTC was able to bounce from $10,000 up to $10,500, before facing some selling pressure that pushed it back below $10,400.
It is now attempting to stabilize above this price level, as an ability to do so could allow it to see further gains.
Where BTC trends in the near-term will likely have major implications for Ethereum.
Analyst: ETH Remains Firmly Bearish So Long as It Trades Below One Key Level
One analyst offered a somewhat bearish outlook on Ethereum, explaining that its market structure is firmly bearish so long is it trades below roughly $380.
This level was previously strong support for ETH, so a failure to recapture this level would be grim.
“Pretty clear signal here on ETH, currently testing a key level. Market structure is clearly bearish unless it is regained. Though trades can be made in either direction, based upon how it resolves.”
Image Courtesy of Lucid. Chart via TradingView.
How Ethereum trends in the coming few hours and days should provide investors with significant insights into its macro outlook.
Featured image from Unsplash. Charts from TradingView.