Is Ethereum’s Impressive Weekly Close Enough to Push it Higher?
Ethereum has been trapped in the distress of a consolidation stage ever since it encountered a rejection at below $450 earlier this week.
The coin has not been able to keep the powerful momentum that sent it to these highs and has been mainly trading between $420 and $430. We should note that Ethereum managed to post a daily and weekly close above $425 yesterday – an extremely bullish sign suggesting that upside may be approaching.
Analysts are now mainly saying that this will be sufficient to push it higher in the days and weeks ahead, but it may first require to drop a bit lower.
Ethereum Posts Bullish Weekly Candle Close
At the time of press, Ethereum is trading down under 1 percent at its current price of $430, which is around where it has been trading for yesterday as well.
We should note that the cryptocurrency has managed to post a weekly candle close above $450, which is an unprecedented level that analysis have been monitoring. Before the bullish close the prior day, one analyst even said that a close above this range could be the start of ETH’s movement towards $500.
“ETH / USD: Seems as though bears are trying to get this weekly close below $425, which was my last major resistance level before we start running up towards $500+…”
Why ETH May Drop Before It Can Extend Its Momentum
The same analyst noted earlier today that he assumes a sudden upswing towards $525 is approaching, but that Ethereum first may have a slight decline towards the lower -$400 zone.
“ETH / USD: Weekly close above $425 is exactly what we wanted to see, now possibly a LTF pullback but eyes on the next target of $525 if we can see another leg upwards… After three weeks, it’s nice to see this level get flipped into support and for bulls to take another key level,” he said.
Unless Bitcoin starts trending lower and produces headwinds for the whole market, it is most probable that Ethereum’s uptrend is still in its early stages.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.