- Ethereum’s price action has been closely tied to that of Bitcoin as of late
- But while Bitcoin has broken multiple key resistance levels, ETH remains below the crucial $380 level
- This level has yet to be broken, with each visit here sparking a slight selloff
- Where Ethereum the entire market trends next will likely depend on Bitcoin and whether or not it can extend its upwards momentum
- One analyst is noting that Ethereum could be on the cusp of full reversing its recent downtrend, but there are a few key levels it must first break
Bitcoin, Ethereum, and most other altcoins are consolidating today, following the intense momentum seen earlier in the week.
ETH has been struggling to break above the $380 level, which has proven to be a turning point for the crypto on multiple occasions. Breaks above this level have sparked strong uptrends, whereas declines beneath it have led to violent selloffs.
If Bitcoin can push higher and create a tailwind for the entire market, ETH will likely once again test this key level.
One analyst is noting that it could enter a full recovery phase if it can post a clean break above $380.
Ethereum Stabilizes Above $370 Following Strong Uptrend
Earlier this week, news of Square acquiring $50 million worth of Bitcoin put a firm end to Bitcoin’s consolidation phase and helped push it past its range highs at $11,200.
This created a tailwind that lifted Ethereum higher, with ETH now trading just below its crucial $380 resistance level.
At the time of writing, Ethereum is trading up just over 1% at its current price of $375. It is trending higher this morning, signaling that a test of its near-term resistance could be imminent.
ETH Could Be on the Cusp of Making a Full Recovery, Claims Analyst
While sharing his thoughts on Ethereum’s current market structure, one analyst explained that he believes a break above $380 is all ETH needs to begin fully recovering its recent losses.
He also notes that the chances of a $280 test are growing slimmer by the day.
“ETH / USD: Think the market is looking to make a full recovery if price get flip $380 into support but that said current price action is looking very bullish and its great to have flipped $360. The chance of retesting $280 gets less and less each day we hold above these levels.”
Image Courtesy of Cactus. Chart via TradingView.
Bitcoin will likely continue guiding Ethereum, making it vital that the benchmark crypto further extends its upwards momentum.
Featured image from Unsplash. Charts from TradingView.