- Ethereum’s price action has been closely correlated to that of Bitcoin, which has caused it to see a bout of consolidation
- It was able to post an incredibly strong move higher yesterday that allowed it to break its $380 resistance
- This level has been a pivotal one for Ethereum for the past several months, and the break above it holds serious technical significance
- That said, it is now imperative that the cryptocurrency stabilizes above this level, as a confirmation of it becoming support could be all that is needed for ETH to rocket higher
- The next crucial level that needs to be broken is $400, as this level has long been strong resistance
Ethereum and the entire crypto market are trading sideways today, which comes as Bitcoin struggles to move past the resistance it faces at $11,600.
This sideways trading is a positive thing for ETH, as the cryptocurrency is currently consolidating above a key resistance level that was just surmounted yesterday. A flip of this level into support could boost it higher.
Assuming this level continues holding strong, it is imperative that bulls subsequently navigate ETH up towards $400.
One analyst believes that a break above this level is imminent and could allow the token to see significantly further gains in the days ahead.
Ethereum Consolidates Above Key Technical Level
At the time of writing, Ethereum is trading down just over 1% at its current price of $382. This is around the price at which it has been trading for the past day.
Its ability to hold above this previously strong resistance level is positive and could mean that further upside is imminent in the near-term.
If confirmed as support, this level may be what helps spark the rally that leads Ethereum past $400.
Analyst: ETH’s Breakout Likely to Catalyze Move into $400 Region
While sharing his thoughts on where Ethereum might trend next, one analyst explained that Ethereum’s market structure points to underlying strength.
He is now targeting a move past $400, calling this a “real breakout” that holds technical significance.
“ETH / USD: Considering this chart is from last week, its beautiful. Seems like a real breakout, think we can break $400. Liking what the market is showing, across the board.”
Image Courtesy of Cactus. Chart via TradingView.
The coming few days and weeks should provide significant insights into Ethereum’s near-term outlook, as it all depends on its reaction to $380 and $400.
Featured image from Unsplash. Charts from TradingView.