Ethereum has flashed some significant signs of strength after posting an intense recovery yesterday.
The cryptocurrency is now back within the boundaries of its multi-month trading range, and buyers appear to be attempting to establish its recent lows as a long-term bottom.
Overnight, sellers pushed it as low as $222 – just a hair above its crucial high time frame support at $220.
The dip to this level catalyzed a significant amount of buying pressure, which was further perpetuated by Bitcoin’s surge from $8,900 to highs of $9,300.
ETH is now trading firmly within the trading range between $230 and $250 that was first formed in early-May. Its outperformance of the aggregated market is pointing to underlying strength amongst its buyers.
One analyst is noting that the crypto’s push higher came about as it reached its “monthly pivot” – signaling that its recent lows may market a long-term bottom.
This comes as multiple bullish narratives surrounding the cryptocurrency begin emerging, which could help bolster any potential uptrend.
Ethereum Reclaims Multi-Month Trading Range as Bulls Roar
This past weekend, the crypto markets faced some weakness when Bitcoin dipped below $9,000.
This movement by the benchmark digital asset sent Ethereum, and virtually all other top altcoins, also reeling lower.
In the time since, however, the market has recovered and is now sitting above where it was before the recent decline.
At the time of writing, Ethereum is trading up roughly 4% at its current price of $236. This marks a massive climb from daily lows of just over $220 that were set yesterday.
Now that the crypto is trading back above the lower boundary of its long-established trading range, buyers may attempt to test its upper limit, which sits around $250.
This latest surge also came about in tandem with the crypto printing a bullish signal at its “monthly pivot” – according to one respected analyst.
“Well, looks like ETH wants to cement, a bullish signal with the Gann Fan, right on the monthly pivot,” he said while pointing to the chart seen below.
Image Courtesy of Mitoshi Kaku. Chart via TradingView.
ETH’s Uptrend Could Be Fueled By Multiple Emerging Narratives
In addition to showing signs of technical strength, multiple narratives are floating amongst investors that could further bolster its uptrend.
Luke Martin – a respected analyst and the host of the Coinist Podcast – spoke about some of these narratives in a recent tweet, pointing to ETH 2.0, DeFi, and EIP 1559.
“ETH trying to move up after a sideways June. The narrative for bullish ETH action has been there (eth 2.0, deFi, EIP 1559) and the charts support that,” he said.
Image Courtesy of Luke Martin. Chart via TradingView.
How Ethereum trends in the days ahead should reveal just how influential these narratives will be on its future price action.
Featured image from Shutterstock. Charts from TradingView.