Ethereum has been closely tracking Bitcoin's price action over the past couple of weeks, which allowed it to post massive gains throughout the first part of the month, before setting a local top that has been followed by firmly bearish downside.
In spite of this, analysts are noting that Ethereum is fast approaching a key technical support level that is brimming with buy orders, which means that a visit to this level could catalyze a move to $200 or higher.
Ethereum reels towards $160 as crypto markets begin establishing downtrend.
At the time of writing, Ethereum is trading down just under 3 percent at its current price of $161.80, which marks a notable decline from its daily highs of $166 that were set around this time yesterday.
Over a slightly larger timeframe, it becomes apparent just how notable the cryptocurrency's recent downtrend is, as it is currently trading down from intra-rally highs of nearly $180. This poor price action has led the cryptocurrency to retrace over 10% from these highs, which has come about in tandem with Bitcoin's fall from highs of $9,200 to its current price within the lower-$8,000 region.
It is important to note that Ethereum has formed a bullish technical formation on its weekly chart, which Satoshi Flipper - a popular crypto analyst on Twitter - explained could lead the crypto up towards highs within the $300 region after one more sharp pullback.
"ETH Weekly Heikin Ashi = Bullish," he said while pointing to the formation seen on the below chart.
Satoshi Flipper is not alone in believing that Ethereum could see one more pullback before it posts a massive rally, as Calmly, another respected cryptocurrency analyst, noted that he is eying a pullback to $155 before it rallies to $180 or higher.
"Ethereum / ETH - I'm still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down. I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180.".
Although ETH's ongoing selloff may cut slightly deeper, it is likely that this will act as a catalyst for further gains.
Ethereum could be primed for a move to over $200 despite ongoing selloff
Published on Jan 24, 2020
by Cryptoslate | Published on Coinage
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