Ethereum and the entire cryptocurrency market is currently witnessing mixed price action.
Yesterday, ETH bulls stepped up and sent the crypto rallying up towards $400 – which happens to be its key resistance level.
At this point, buyers lost their momentum, and it once again fell back into its consolidation channel around $390.
Despite this, analysts are now noting that the cryptocurrency’s technical outlook is growing bright, and it may only be a matter of time before Ethereum journeys higher.
There is one crucial support level that on trader is pointing to that must continue holding in the near-term, as he notes that a break below it could be all that is needed for its strong uptrend to reverse.
Ethereum Struggles to Break $400 Despite Technical Strength
At the time of writing, Ethereum is trading up just over 1% at its current price of $394. This is around where the crypto has been trading throughout the past week.
Overnight, bulls attempted to shatter the heavy resistance that sits within the lower-$400 region, but they were unable to do so, and the crypto quickly declined back towards its $390 support level.
One trader is noting that Ethereum remains technically strong despite this recent rejection.
Image Courtesy of Lucid. Chart via TradingView.
Analyst: ETH is at a Turning Point as It Trades Between Key Support and Resistance
Another analyst explained that he now believes Ethereum is at a “turning point” in which its macro trend will soon be determined.
He notes that the only factor that could provide it with any bearishness is a high time frame close beneath $350 – which he doesn’t expect to happen.
Image Courtesy of Cactus. Chart via TradingView.
Whether or not Ethereum can break $400 in the coming days will likely depend on Bitcoin’s reaction to $12,000.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2DUME60
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.