- Ethereum has been consolidating alongside Bitcoin throughout the past several days, struggling to break above the heavy resistance that has been formed at $400
- This consolidation phase has offered little insight into the cryptocurrency’s near-term outlook
- Analysts are now noting that ETH may be well-positioned to see significant upside in the short-term
- One trader is noting that there is one level that could invalidate this strength, but it remains unclear as to whether or not it will be tested anytime soon
Ethereum and the entire cryptocurrency market is currently witnessing mixed price action.
Yesterday, ETH bulls stepped up and sent the crypto rallying up towards $400 – which happens to be its key resistance level.
At this point, buyers lost their momentum, and it once again fell back into its consolidation channel around $390.
Despite this, analysts are now noting that the cryptocurrency’s technical outlook is growing bright, and it may only be a matter of time before Ethereum journeys higher.
There is one crucial support level that on trader is pointing to that must continue holding in the near-term, as he notes that a break below it could be all that is needed for its strong uptrend to reverse.
Ethereum Struggles to Break $400 Despite Technical Strength
At the time of writing, Ethereum is trading up just over 1% at its current price of $394. This is around where the crypto has been trading throughout the past week.
Overnight, bulls attempted to shatter the heavy resistance that sits within the lower-$400 region, but they were unable to do so, and the crypto quickly declined back towards its $390 support level.
One trader is noting that Ethereum remains technically strong despite this recent rejection.
“ETH looking primed for continuation. Confirmation post a break of the green line, invalidation if it breaks down first,” he explained while pointing to the below chart.
Image Courtesy of Lucid. Chart via TradingView.
Analyst: ETH is at a Turning Point as It Trades Between Key Support and Resistance
Another analyst explained that he now believes Ethereum is at a “turning point” in which its macro trend will soon be determined.
He notes that the only factor that could provide it with any bearishness is a high time frame close beneath $350 – which he doesn’t expect to happen.
“ETH / USD: Literally a major turning point for ETH HTF momentum, unless we close a weekly or a monthly below $350 sometime soon it’s pretty much impossible to be bearish. We are about to see some real upside momentum in Q4,” he explained.
Image Courtesy of Cactus. Chart via TradingView.
Whether or not Ethereum can break $400 in the coming days will likely depend on Bitcoin’s reaction to $12,000.
Featured image from Unsplash.
Charts from TradingView.