Ethereum is About to Flip a Key Resistance Level into Support; New Highs Imminent?

Ethereum

Ethereum and the entire cryptocurrency market have seen mixed price action throughout the past few days and weeks.

The selling pressure seen each time ETH ventures into the mid-$1,200 region is quite intense and may indicate that further downside is imminent in the near-term.

One analyst is still incredibly bullish on the crypto, however, noting that there’s a strong possibility it sees a test of its all-time highs if it can flip $1,250 into support.

Ethereum Consolidates Alongside Crypto Market as Momentum Stalls

At the time of writing, Ethereum is trading down marginally at its current price of $1,230, which is around where it has been trading throughout the past couple of days.

The crypto made an attempt to break above $1,300 just a couple of days ago, but the selling pressure here was quite intense and sparked a rejection.

Where it trends in the mid-term should depend largely on whether or not bulls can continue forming a strong base of support between $1,200 and $1,230. Holding above this level could lead to significant upside.

Analyst Claims ETH Could Rally Higher if It Flips $1,250 to Support

One analyst explained in a recent tweet that he is closely watching for Ethereum to flip $1,250 into support before it can see any significant near-term upside.

He notes that a break above this level could lead to a test of all-time highs and that bulls must defend against a break below $1,170.

“ETH / USD: Currently my thoughts on ETH at the moment in terms of lower timeframe momentum. I will get a newsletter out later today going into more detail and what to expect with PA. The best long R:R right now is PA flipping $1250 into support, looking to remain above $1170.”

Image Courtesy of Cactus. Source: ETHUSD on TradingView.

Ethereum is currently trading at a pivotal point. How it continues reacting to the key levels just above and below its current price should provide some significant insights into its mid-term outlook.

Featured image from Unsplash.
Charts from TradingView.
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