- Ethereum’s price development has been strikingly similar to Bitcoin’s lately
- The crypto is once again showing strong signs of correlation with BTC, which has resulted in it being relatively restless lately
- It has continued to gain slight ground versus BTC, although it is now battling resistance from its BTC trading pair
- It is also nearing some major USD resistance levels, with bears trying to protect USD 1,250 and USD 1,300
- A clear break above these two planes could trigger a parabolic movement that takes him significantly higher
- A trader expects this type of breakout rally to happen in the near future and notes that they are looking for serious outperformance from BTC
Ethereum has struggled to break free from Bitcoin, which has resulted in relative consolidation over the past few weeks.
There is currently some resistance between $ 1,250 and $ 1,300, just a hair above the trading level.
Similar to BTC, Ethereum dips have been aggressively absorbed by buyers, which is a positive sign.
A trader is now waiting for ETH to see a massive uptrend against BTC and USD in the short term and notices that it is on the verge of breaking some key levels.
Ethereum is consolidating as the bulls struggle to break key resistance
At the time of writing, Ethereum is trading a little over 1% from its current price of $ 1,240. Here has been trading in the last few days.
The resistance just above the current price of $ 1,250 is high as it has been holding back the growth of the cryptocurrency for the past few days and weeks.
Breaking this level opens the gates to a test of $ 1,300. This is another important level that should be closely monitored in the short term.
Analysts claim ETH will likely break free of the BTC correlation
One analyst wondered if Ethereum could break away from its BTC correlation soon and move higher.
He notes that the “shackles” of the cryptocurrency will be released soon, which could lead to serious upward movements in the medium term.
“ETH: I’m sure if Eth wasn’t tied to BTC as it is (because it’s # 1 and # 2) it would have printed ATH USD some time ago. However, I think the shackles will be released soon and the BTC pair looks very strong. BTC needs to prepare for a relationship. “
Image Courtesy of Resolute. Source: ETHBTC on TradingView.
The coming days should shed some light on where the market will develop in the medium term, as any Bitcoin weakness could add to Ethereum’s and hinder its growth.
Featured image from Unsplash. Charts from TradingView.