- Ethereum has flashed signs of immense power despite a fleeting overnight selloff
- This recent decline came about in tandem with that seen with the rest of the crypto market
- Bitcoin plunged below $18, 000 before posting a “V-shaped” recovery plus rallying significantly higher
- This recovery also helped lead ETH higher, with the cryptocurrency rapidly navigating back up to where it is often trading throughout the past couple of days
- Its latest strength and unwavering uptrend indicate that further benefit is imminent
- One trader is watching for a move higher within the near-term, noting that it can rally towards $850 just before its momentum slows down
Bitcoin as well as the entire cryptocurrency market have already been caught in the throes of an intense bull run through the past few days and days, with Ethereum being particularly exposed to the recent market-wide strength.
The cryptocurrency has posted substantial gains over the past few days, with its recent break above $500 creating momentum that has accelerated ever since.
Where it trends next will probably depend on its continued reaction to a key resistance level that sits just above exactly where it is currently trading.
If it breaks this level, he believes that the move up towards $850 could be imminent.
Ethereum Shows Signs of Strength as Bulls Absorb Promoting Pressure
At the time of composing, Ethereum is trading upward just over 3% at the current price of $564, which usually marks a massive rise through overnight lows of $510.
The extreme momentum seen over the past few days indicates that it may shortly erase its trend associated with underperforming Bitcoin, with the cryptocurrency targeting $600.
Where it trends following will likely depend largely on its continued reaction to the resistance that sits just above where it is presently trading.
Analyst: ETH Could Focus on $850 Once This Key Level is Broken
One trader explained that Ethereum could soon rocket as high as $850 once it can move past one particular crucial level.
He points to roughly $600 as the resistance to view, with a break above right here allowing for a parabolic rally to new post-2017 levels.
“ETH: Buying here makes little sense to me. I’ deb wait for reaccumulation around former resistance or for a break above range mean or weekly supply to target $850 next. ”
Image Courtesy of George. Resource: ETHUSD on TradingView.
The coming few days should provide investors along with serious insight into where the whole market will trend in the near-term, as Ethereum’s price action should largely guide altcoins.
Featured image from Unsplash. Charts from TradingView.