Heres How Low Ethereum May Need to Plunge Before it Can Rally Higher

• Ethereum saw a massive price spike yesterday that allowed it to shatter its previous resistance at $400
• From here, the cryptocurrency rallied nearly 10% higher until it hit the $430 region, which is where it found some short-term resistance
• Although being incredibly strong at the present moment, analysts are noting that it may first need to see a deep pullback before its price can push any higher
• This may lead it as low as $360 in the near-term, but analysts are also noting that a bounce here could confirm a highly bullish accumulation pattern

Ethereum has been one of the best performing major cryptocurrencies over the past 24-hours.

Yesterday, after consolidating around $390 for an extended period of time, the cryptocurrency’s price saw a massive spike that led it up to highs of over $430.

This rally came about suddenly and unexpectedly, with it catching many investors off-guard due to it being somewhat random.

Concurrent with this movement, most other digital assets remained stagnant, although it did help create a slight tailwind that pushed BTC up towards the upper-$11,000 region.

Analysts are now noting that it may be poised to see a sharp retrace before it is able to post any further gains.

This retrace could also confirm an extremely bullish accumulation pattern – so long as bulls defend its key support.

Ethereum Rallies Past High Time Frame Resistance in Sudden Movement 

At the time of writing, Ethereum’s price is finding stability around $425, which is just below the peaks it posted during yesterday’s sharp movement.

The momentum it incurred yesterday allowed it to test highs of $435 on multiple occasions, but it has yet to stabilize above $430.

While speaking about this, one analyst explained that he believes it may need to see a slight decline towards $400 before it can push higher.

“ETH / USD: Weekly close looking completely nuts right now, I guess $475 would be the next major level of resistance. Probably expect a pullback to around $400 level before the end of the month to confirm this level as support but overall this is looking more bullish than ever.”

Image Courtesy of Cactus. Chart via TradingView.

ETH Declining Towards $360 Could Confirm Ultra-Bullish Pattern 

Another analyst also forecasted near-term downside, but he believes the next plunge is part of a bullish accumulation pattern that Ethereum has been forming as of late.

As seen on the below chart he offers, this next decline could lead the crypto into the $360 region – which has been established as bedrock support on multiple occasions.

Image Courtesy of il Capo of Crypto. Chart via TradingView.

Even if Ethereum does face a short-term pullback, it does appear that the crypto is well-positioned to see further upside over a macro time frame.

Featured image from Unsplash.
Charts from TradingView.

Originally from Bitcoinist.com https://ift.tt/2PVhCgN