Ethereum has been flashing some signs of strength throughout the past few days, with bulls being in full control of its price action as they aim at pushing the cryptocurrency above the key $600 level.
This price has long been a pivotal level for the crypto, with each break above its proving to be highly fleeting.
As such, this is now the key resistance level that analysts are watching in the near-term, with a flip of this from resistance to support, potentially allowing it to see some massive gains in the days and weeks ahead.
One trader explained in a recent tweet that the overnight strength seen by ETH has allowed it to post a “perfect” support-resistance flip of $577, with the defense of this level leading him to suspect that further upside is imminent in the near-term.
Bitcoin has been holding tremendous influence over Ethereum’s price action, making it vital that BTC also shows continued strength in the days and weeks ahead.
For its present strength to be invalidated, one analyst believes that a decline below $560 will be a sign that bulls do not have enough underlying strength to perpetuate its uptrend.
Ethereum Shows Signs of Strength as Crypto Market Consolidates
At the time of writing, Ethereum is trading down just under 1% at its current price of $585.
This is around the price at which it has been trading throughout the past few days and weeks, with the selling pressure between $590 and $600 both slowing its growth.
Until Bitcoin breaks out and shatters the heavy resistance it faces around $19,400, ETH will likely continue ranging sideways.
The next key hurdle for ETH to overcome is $600, as flipping this into support could lead to an extension of its multi-month uptrend.
Trader Claims ETH is Positioned to Climb Higher Heading into 2021
While sharing his thoughts on where Ethereum might trend in the mid-term, one trader explained that a near-perfect support-resistance flip indicates that this consolidation phase will be followed by upside.
“ETH / USD: There we have it, a pretty much perfect S/R flip of this previous resistance level now acting as support… I’m going heavily long here, if im wrong then will cut my position on $560 being broken. If im right then this will likely be a great spot going into 2021.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
Where Bitcoin trends next should provide some serious insights into where altcoins like Ethereum will trend in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.