Ethereum’s price action has been largely bearish over the past several days and weeks, with ETH facing multiple strong rejections that have pointed to some underlying weakness amongst the cryptocurrency’s bulls.
Analysts are now noting that Ethereum could be on the verge of incurring a major upwards movement, but that it may need to drop significantly further before this rally kicks off.
Ethereum Continues Trading Sideways, But All Eyes Remain on Bitcoin
At the time of writing, Ethereum is trading down marginally at its current price of $127, which marks a slight decline from its daily highs of $130 that were set earlier today before it faced a rejection that sparked a slight sell-off.
ETH has found continued support at roughly $125 throughout the day, although its major level of support exists at roughly $120, which has held strong on multiple occasions throughout the past few weeks.
Bitcoin has been trading sideways around $7,300 for the past several days, with each attempt to rally being followed by swift rejections that lead it back to its current price levels.
Luke Martin, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin’s price action will likely have a large sway on that of altcoins like Ethereum, as a failure to break above $7,600 could leave ETH range bound.
“$ETH leading in both directions but only helpful on smaller timeframes as the chop continues. The first level that would make me think the range-bound action stops is Bitcoin above 7600. Until then it’s hard to get excited,” he said while pointing to the chart seen below.
$ETH leading in both directions but only helpful on smaller timeframes as the chop continues.
The first level that would make me think the range-bound action stops is Bitcoin above 7600.
Until then it's hard to get excited. pic.twitter.com/aYxawJH6ff
— Luke Martin (@VentureCoinist) December 26, 2019
Analyst: ETH May Need to Dip Lower Before Next Rally Commences
UB, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that Ethereum may need to drop to the lower-$100 region before it finds enough support to spark a rally.
“$ETH – Entered into a Swing Short from here. HTF charts are still looking weak. D3 unable to close above HTF resistance. I’m liking the $111 – $109 area for a potential bounce,” he explained while pointing to the chart seen below.
$ETH – Entered into a Swing Short from here. HTF charts are still looking weak. D3 unable to close above HTF resistance.
I'm liking the $111 – $109 area for a potential bounce.#Ethereum pic.twitter.com/aWRltdrdG3
— UB (@CryptoUB) December 27, 2019
Assuming that Bitcoin continues to trade sideways in the near-term, it is possible that Ethereum’s current short-term bearishness will lead it to drop to the lower-$100 region, which could be just what it needs to spark its next rally.
Featured image from Shutterstock.
