Ethereum has been stuck below $380 for the past few days, which is a critical level that has long held serious influence over the entire crypto market.
If it remains stuck below this level, it could be a sign that bulls are losing their edge over the asset and that further downside is imminent.
ETH’s near-term outlook appears to remain largely correlated to Bitcoin, as the benchmark cryptocurrency has been providing firm guidance to the Advertisements
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin market as of late.
This isn’t a bad thing, as BTC is stable at around $11,500 and may be growing stronger as bulls aim at breaking its $11,600 resistance.
In the near-term, ETH bulls must shatter the $380 level and confirm it as support. Doing so will provide the crypto with a strong base of support that could help launch it significantly higher in the days and weeks ahead.
One analyst explained in a recent tweet that there are a few catalysts in the near-term that could provide it with serious upside, including phase 0 launch of ETH 2.0 and a higher high and higher low on top of its 715-day trading range breakout.
At the time of writing, Ethereum is trading up just under 2% at its current price of $375. This is around the price at which it has been trading throughout the past few days and weeks.
Bears recently attempted to push it below $370, but the buying pressure here was quite significant and helped spark a sharp rebound.
Where it trends in the mid-term will likely depend largely on whether or not bulls can surmount $380.
This level has proven to be pivotal in the past and will likely continue governing Ethereum’s near-term outlook.
One analyst explained that there are three fundamental and technical catalysts that will likely influence Ethereum’s price action in the months ahead. They are all overtly bullish.
“ETH Notes on Chart: 2.0 Coming. HH + HL on top of 715 day range break. PoB to ATH’s… you’re bearish?”
Image Courtesy of Pentoshi. Source: ETHUSD on TradingView.
How Ethereum trends heading into 2021 will undoubtedly depend somewhat on Bitcoin.
This makes it vital for ETH that BTC can break its macro consolidation phase and rally higher in the months ahead.
Featured image from Unsplash. Charts from TradingView.