Ethereum’s price has been driven higher by a massive influx of buying pressure seen throughout the past several days.
The intensity of its uptrend has even been enough to drive Bitcoin’s price higher as well, with the benchmark cryptocurrency flying past its $10,000 resistance level yesterday shortly after Ethereum was able to rally up to $320.
The cryptocurrency has since stabilized around this price level as buyers attempt to garner greater support.
Analysts are now convinced that further upside is imminent for ETH, as the technical strength created by its latest movement higher should not be understated.
On-chain data also suggests that Ethereum is nearing a make-or-break level. Its reaction to its current price region may set the tone for where it trends in the days and weeks ahead.
Ethereum Shows Signs of Technical Strength as Analysts Eye Upside
At the time of writing, Ethereum is trading up just under 2% at its current price of $316. This is around where the crypto has been trading throughout the past day.
It is important to note that bulls are struggling to support it above the $320 region, as it has faced multiple micro-rejections at this level throughout the past few hours.
Whether or not buyers can shatter the resistance that exists here should reveal its short-term strength.
Analysts are noting that the cryptocurrency could be well-positioned to see further upside, however, as it recently shattered the top of a multi-month trading range.
One trader points explicitly to $365 as a near-term target, explaining that a BTC break above $10,500 could spark this next movement.
“ETH now soundly thru the $318 range, pushing a 40% 7d return. The $365 high from last summer is now squarely in sight. I threw the last 2 pieces of resistance I can find on the chart, the 2019 high close and one more HOD at 334 and 343. Eyes on BTC for the 10.5 break as well.”
Image Courtesy of Jonny Moe. Chart via TradingView.
This On-Chain Data Suggests It’s Do or Die Time for ETH
Analytics platform Glassnode explained in a recent post that Ethereum’s “Net Unrealized Profit/Loss” is currently moving into the “optimism” zone.
The past few times it hit this region, the crypto faced a firm selloff. A push past this level, however, could mean a major uptrend is brewing.
“Ethereum’s Net Unrealized Profit/Loss is seeking to move into the ‘Optimism’ zone for the 3rd time in the past 2 years. If the break is sustained & quickly bridged into the ‘Belief’ zone, this could signal an extended period of ETH price appreciation.”
Image Courtesy of Glassnode.
How Ethereum trades in the hours ahead will likely have major implications for its macro trend.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on July 28, 2020 at 02:30AM
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