Ethereum’s price action has been closely correlated to that of Bitcoin throughout the past few days.
This has caused ETH to enter a consolidation phase as it trades just below $320.
Although its slight decline seen overnight has led it to flash some signs of weakness, its macro outlook still remains incredibly bright.
Analysts are noting that the cryptocurrency is about to close above a historically significant level, which may open the gates for a move up towards $400 in the near-term.
While zooming out and looking at the cryptocurrency’s macro outlook, other analysts concur with the notion that upside is imminent. One trader is even targeting a yearly close at above $500.
In the near-term, whether or not Ethereum is able to climb higher will likely depend largely on how Bitcoin trends as it hovers around the $11,000 region.
Any sharp decline from here will likely lead to a notable market-wide selloff.
Ethereum Flashes Signs of Immense Mid-Term Strength Despite Consolidation Phase
At the time of writing, Ethereum is trading down marginally at its current price of $317. This is around the price at which the crypto has been trading throughout the past several days.
Despite its overt strength that has come about as a result of the multi-week uptrend it has been caught within, the crypto is still struggling to garner a strong footing within the $320 region.
It’s a strong possibility that it will continue struggling to stabilize around this price region as long as Bitcoin remains below its key resistance in the mid-$11,000 region.
Despite this short-term weakness, Ethereum’s mid-term outlook still remains incredibly bright.
One popular crypto analyst recently explained that a close today above $320 could be all that ETH needs to “launch” up past $400.
“ETH looking good on the 2 day chart. Close above this level and launch it to $400+,” he explained while pointing to the chart seen below.
Image Courtesy of Josh Rager. Chart via TradingView.
Here’s How High Analysts Expect ETH to Climb by EOY
As for how high the cryptocurrency may be able to climb in the months ahead, analysts are setting their sights on a yearly close at above $500.
Cactus – a respected crypto trader who forecasted Ethereum’s rally past $300 while it was still in the lower-$200 region – explained that he believes a move to $500 before the end of the year is in the cards.
To justify this bullish outlook, he offered a chart showing the break above the crucial high time frame resistance it previously faced at between $280 and $300.
“ETH / USD: Now that’s the most bullish weekly chart I’ve seen… I honestly think we see $500 end of year now…”
Image Courtesy of Cactus. Chart via TradingView.
For this bullish possibility to be validated, it is imperative that Bitcoin also continues pushing higher as the year drags on.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on July 31, 2020 at 02:30AM
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