Although Bitcoin has continued its extended period of rangebound trading, it is important to note that Ethereum (ETH) has been able to see further upwards momentum today, with the cryptocurrency rallying past key resistance as its market structure shapes up to be highly bullish.
Analysts are now noting that the cryptocurrency may have established a mid-term bottom, with its current rally leading it up to a few key levels that, if broken above, could spark some significant upwards momentum.
One top analyst is noting, however, that a rejection at this level could lead the crypto to see some significant losses.
Ethereum Rallies 5% as Analysts Eye Potential Mid-Term Bottom Formation
At the time of writing, Ethereum is trading up just under 3% at its current price of $244.80, which marks a massive climb from daily lows of $236 that were set yesterday.
It is important to keep in mind that Ethereum has been caught within a slow and steady upwards grind over the past several days, climbing from multi-day lows of $220 to highs around its current price level that were set earlier this morning.
The cryptocurrency’s firm uptrend seen throughout the past several days has come about in the face of the sideways trading faced by Bitcoin and most other altcoins.
Jonny Moe, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that his previously bearish assessment of ETH may have ended up marking a mid-term bottom, as the crypto has since been able to bounce at key support and climb past a descending resistance line.
“Sometimes you just have to tweet a bottom,” he said while pointing to the levels marked on the below chart.
Sometimes you just have to tweet a bottom. $ETH pic.twitter.com/PxUxqGHZAb
— Jonny Moe (@JonnyMoeTrades) March 6, 2020
ETH To See Major Gains if It Breaks Above $247
Although ETH has already broken above multiple key resistance levels that were previously suppressing its price action, it is important to keep in mind that the cryptocurrency could see further momentum if it decisively breaks above $247.
Crypto Michaël, a prominent analyst and trader, spoke about this level in a recent tweet, explaining that its reaction here will provide insight as to where it is going next.
“Ethereum: Nice rally upwards and approaching some levels here. I would love to see the reaction at the $247 and probably $253 level. Confirming resistance could indicate we’ll retest the $220 level,” he explained.
Nice rally upwards and approaching some levels here.
I would love to see the reaction at the $247 and probably $253 level.
Confirming resistance could indicate we'll retest the $220 level. pic.twitter.com/LNLyOOlCmT
— Crypto Michaël (@CryptoMichNL) March 7, 2020
Although the crypto did see a slight rejection at this level earlier today, it is important to keep in mind that ETH’s decorrelation with Bitcoin and other altcoins may allow it to climb higher despite the markets showing some signs of weakness.
Featured image from Shutterstock.
