Here’s How Low Ethereum May Need to Plunge Before it Can Rally Higher
- Ethereum saw a massive price spike yesterday that allowed it to shatter its previous resistance at $400
- From here, the cryptocurrency rallied nearly 10% higher until it hit the $430 region, which is where it found some short-term resistance
- Although being incredibly strong at the present moment, analysts are noting that it may first need to see a deep pullback before its price can push any higher
- This may lead it as low as $360 in the near-term, but analysts are also noting that a bounce here could confirm a highly bullish accumulation pattern
Ethereum has been one of the best performing major cryptocurrencies over the past 24-hours.
Yesterday, after consolidating around $390 for an extended period of time, the cryptocurrency’s price saw a massive spike that led it up to highs of over $430.
This rally came about suddenly and unexpectedly, with it catching many investors off-guard due to it being somewhat random.
Concurrent with this movement, most other digital assets remained stagnant, although it did help create a slight tailwind that pushed BTC up towards the upper-$11,000 region.
Analysts are now noting that it may be poised to see a sharp retrace before it is able to post any further gains.
This retrace could also confirm an extremely bullish accumulation pattern – so long as bulls defend its key support.
Ethereum Rallies Past High Time Frame Resistance in Sudden Movement
At the time of writing, Ethereum’s price is finding stability around $425, which is just below the peaks it posted during yesterday’s sharp movement.
The momentum it incurred yesterday allowed it to test highs of $435 on multiple occasions, but it has yet to stabilize above $430.
While speaking about this, one analyst explained that he believes it may need to see a slight decline towards $400 before it can push higher.
“ETH / USD: Weekly close looking completely nuts right now, I guess $475 would be the next major level of resistance. Probably expect a pullback to around $400 level before the end of the month to confirm this level as support but overall this is looking more bullish than ever.”
ETH Declining Towards $360 Could Confirm Ultra-Bullish Pattern
Another analyst also forecasted near-term downside, but he believes the next plunge is part of a bullish accumulation pattern that Ethereum has been forming as of late.
As seen on the below chart he offers, this next decline could lead the crypto into the $360 region – which has been established as bedrock support on multiple occasions.
Even if Ethereum does face a short-term pullback, it does appear that the crypto is well-positioned to see further upside over a macro time frame.
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