Ethereum May Still Experience the Bear Market
Despite Bitcoin being the normal leader of the cryptocurrency market, Ethereum has been doing better than the majority of all digital assets within the previous few days.
At press time, the price of Ethereum was $182, which represents a 7 percent increment over the previous 24 hours and up to 24 percent increment since the weekly lows close to $147.
The performance of Ethereum is such that its price increased by more than 100 percent from the bottom attained during the crash last month. It has performed better than most of the multi-billion-dollar assets, even the ones rescued by the authorities worldwide.
In spite of this decisively powerful price action, an analyst still thinks that Ethereum bulls should be careful, as there is need for the breaching of a key level to confirm a trend reversal.
Besides, a cryptocurrency trader called Calmly thinks that it is uncertain that Ethereum will enjoy a bullish medium-term following the recent rally. According to him, a weekly close over $190 would establish his confidence for a bullish price action.
He noted that in history, the price range between $180 and $190 has been a critical area for Ethereum, as it acts as a stepping stone for rallies. Further, Ethereum has often visited the area as barrier many times.
Top analysts are looking forward to Ethereum’s attempt to surge above the $190 zone. According to a renowned trader known as Hsaka, the current price action has helped Ethereum to surge above a pivotal area, thereby suggesting a remarkable bullish follow-through towards $200.
$ETH breaking its pivotal 175-180 zone.
A break of this area (in either direction) has always seen substantial follow through.
Eyes on 200 next. pic.twitter.com/EkfXBEQzoN
— Hsaka (@HsakaTrades) April 18, 2020
Another trader known as HornHairs on Twitter corroborated the stance of Hsaka. He noted the possibility of Ethereum being amidst a “full retrace” of the seller market, meaning that it would experience an upsurge to its highest price level this year ($290) in the months ahead.
Looking at fundamental factors, Grayscale Investments reported heavy investments into ETH and BTC by institutional players in spite of the recent downturn in global markets. Besides, the throughput volumes on Ethereum blockchain are increasing, thereby pointing to the bullish narrative.
Featured image courtesy of Shutterstock. Source: Cryptopress.