Ethereum’s recent decline to the sub-$380 region kicked off a strong uptrend, which has since allowed it to firmly surmount the resistance it was previously facing around $400.
The cryptocurrency is now attempting to secure a strong foothold within this price region, as a flip of $400 into a support level could be enough to send BTC surging higher.
Analysts are now setting their sights on a movement up towards $425 in the near-term, which is a major resistance level that may spark a far-reaching selloff.
While one trader is targeting a decline to ETH’s liquidity region at $360, another trader recently put forth a more aggressive downside target of $320.
Ethereum Shows Signs of Short-Term Strength; Here’s How Far It May Rally
At the time of writing, Ethereum is trading up just under 2% at its current price of $402. This marks a notable surge from multi-day lows of $379 that were set just a few days ago.
Analysts believe that a flip of $400 to support could help lead Ethereum even higher, with one trader setting his sights on a rally up towards $425 in the near-term. He thinks that the visit to this level will be followed by a sharp decline.
Image Courtesy of Chase_NL. Chart via TradingView.
Why One Trader is Expecting ETH to Decline Towards $320
Another analyst is offering a more aggressive downside target for the cryptocurrency.
He explained in a recent tweet that the resistance at $405 is significant and that he expects a rejection at this level to lead Ethereum as low as $320.
Image Courtesy of Cold Blooded Shiller. Chart via TradingView.
Because Ethereum is generally correlated with Bitcoin, where the benchmark crypto trends in the near-term may have some influence over ETH.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/32GCu1i
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