Will Ethereum’s Strong Weekly Close Be Enough to Propel It Higher?
- Ethereum has been hovering between $420 and $430 for the past few days, with the resistance found around $450 sparking a prolonged consolidation phase
- The cryptocurrency has been unable to extend its recent upwards momentum after facing a rejection at this level
- This has pointed to some underlying short-term weakness, although its long-term outlook remains incredibly bright
- Analysts are now noting that the token may be well-positioned to see significantly further upside after it sees a low-time-frame dip
- This potential strength comes after it closed its daily and weekly candle above the key $425 region
Ethereum has been caught in the throes of a consolidation phase ever since it faced a rejection at just below $450 earlier this week.
The cryptocurrency has not been able to maintain the intense momentum that sent it to these highs and has been largely trading between $420 and $430.
It is important to note that the cryptocurrency was able to post a daily and weekly candle close above $425 yesterday – an incredibly bullish sign indicating that upside may be imminent.
Analysts are now widely noting that this will enough to lift it higher in the days and weeks ahead, but it may first need to dip slightly lower.
Ethereum Posts Bullish Weekly Candle Close
At the time of writing, Ethereum is trading down just under 1% at its current price of $430. This is around where it has been trading for the past day.
It is important to note that the cryptocurrency was able to post a weekly candle close above $425 – which is a historically important level that analysts have been closely watching.
Prior to the bullish close yesterday, one analyst even went so far as to note that a close above this level could mark the start of ETH’s movement towards $500.
“ETH / USD: Seems as though bears are trying to get this weekly close below $425 which was my last major resistance level before we start running up towards $500+…”
Image Courtesy of Cactus. Chart via TradingView.
Here’s Why ETH May Dip Lower Before It Can Extend Its Momentum
The same analyst noted earlier today that he suspects a sharp upswing towards $525 is imminent in the near-term, but that Ethereum first may post a slight decline towards the lower-$400 region.
“ETH / USD: Weekly close above $425 is exactly what we wanted to see, now possibly a LTF pullback but eyes on the next target of $525 if we can see another leg upwards… After 3 weeks its nice to see this level get flipped into support and for bulls to take another key level.”
Image Courtesy of Cactus. Chart via TradingView.
Unless Bitcoin starts trending lower and creates headwinds for the entire market, it is highly likely that Ethereum’s uptrend is still in its early phases.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow