Ethereum (ETH) has seen some notable gains today that have led the cryptocurrency to climb towards the $240 region, with this latest upsurge coming about as Bitcoin begins finding some stability within the lower-$9,000 region.
Analysts are now widely noting that Ethereum could see some further momentum as its market structure begins growing increasingly bullish.
Despite this, one top trader is noting that simple technical analysts seems to suggest that this rally could be fleeting, explaining that a significant drop below $200 could still be imminent in the weeks ahead.
Ethereum Surges Towards $240 as Bitcoin Stabilizes Around $9,100
At the time of writing, Ethereum is trading up just under 3% at its current price of $238, which marks a notable climb from daily lows of $228 that were set yesterday.
The cryptocurrency rallied up to highs of $240 earlier today before finding some significant selling pressure, signaling that this region is the near-term resistance level that ETH is currently facing.
Although it has been unable to surmount this resistance, it is important to keep in mind that analysts are widely anticipating the crypto to break through this level and post significantly further upside.
George, a prominent cryptocurrency trader on Twitter, spoke about ETH in a recent tweet, pointing to a chart showing that a hold above $236 could lead it to climb back up towards its year-to-date highs of $290.
“ETH: Looking super strong imo both vs the dollar and btc. Break back within this range and I think this outperforms btc hard. Still got my spot bag. I’m ready,” he explained.
Looking super strong imo both vs the dollar and btc. Break back within this range and I think this outperforms btc hard. Still got my spot bag. I'm ready. pic.twitter.com/3NJ2blSIME
— George (@George1Trader) March 6, 2020
Analyst: ETH Bulls Aren’t Out of the Woods Yet
Although George is bullish on ETH in the near-term, it is important to note that there are still some simple technical factors that could lead the cryptocurrency to plummet significantly lower in the near-term.
Bitcoin Jack – another popular trader – spoke about these bear-favoring factors in a recent tweet, telling his followers that its current 6-hour candle could close as a Swing Failure Point (SFP), which would be a gave sign that shows a significant drop towards $180 is imminent.
“You probably disagree with me but I think ETH steps in to the fridge too if this H6 closes like an SFP. If not, awaiting D1-D3 development to confirm direction and possibly cut early if no bullzooka through stop occurs,” he explained while pointing to the below chart.
You probably disagree with me but I think $ETH steps in to the fridge too if this H6 closes like an SFP
If not, awaiting D1-D3 development to confirm direction and possibly cut early if no bullzooka through stop occurs pic.twitter.com/OUi97XcJQI
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) March 6, 2020
Unless bulls step up and propel ETH past its key resistance in the coming several hours, it does appear to be a strong possibility that the cryptocurrency could see some further near-term downside.
Featured image from Shutterstock.
