Bitcoin’s ability to continue holding above $10,000 has boosted Ethereum, with the crypto now trading within the mid-$300 region as bulls attempt to claw back some of the gains that were lost in recent weeks.
Despite the blow that its decline from $490 to $320 struck to its market structure, one analyst is observing that the cryptocurrency has been able to trade above multiple key levels throughout the course of its recent turbulence.
This is a bullish sign for its mid-term outlook, and also reveals that it may be able to avoid a possible capitulatory downside scenario that leads it to its bedrock support around $200.
Ethereum Shows Signs of Strength as It Rebounds Alongside Bitcoin
At the time of writing, Ethereum is trading up just under 4% at its current price of $350.
This marks a notable rebound from its daily lows of $325 that were set at the bottom of the recent selloff.
These lows coincided closely with its key support region, which is what allowed it to see some upside momentum today.
This momentum also stemmed, in part, from Bitcoin’s ability to rocket from lows of $9,950 to highs of $10,250.
BTC will likely continue providing guidance to both Ethereum and the aggregated market.
Analyst: ETH Maintains Above Key Levels, Avoiding Likelihood of a Major Decline
He notes that this is a bullish sign, and offers a chart showing that a decline beneath these levels could be grim – even opening the gates for a decline towards its bedrock support in the lower-$200 region.
Image Courtesy of Crypto Michael. Chart via TradingView.
Whether or not Ethereum can continue guarding against further downside remains to be seen and will likely depend mostly on Bitcoin.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3ie1Bzi
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.