Ethereum Ready to Retest Multi-Month Highs
The performance of Ethereum has been remarkably below that of Bitcoin recently. At the moment, Bitcoin is trading close to its multi-month highs while Ethereum remains remarkably under its level seven days ago.
Due to this weakness relative to Bitcoin, it is revealing certain moderate breakdown signals. Nevertheless, the bulls were firm in defending Ethereum’s key support close to $198.
Currently, according to Analysts, Ethereum may be primed for a rally to its recent highs of over $230. This is as its technical strength keeps growing.
At press time, the price of the cryptocurrency was $213.1, representing a little fall from daily highs of $216. Ethereum was able to recover from its multi-day lows of about $200 that were established during a steep selloff on May 6.
The dull price action of Ethereum comes after a long bout of performance below Bitcoin. It first began towards the end of February when the entire cryptocurrency market started losing momentum. When the successive fall happened, the price of Ethereum fell from highs of $290 to lows around the sub-$100 area.
Bitcoin is now moving towards its highest price level this year since the market crash in the middle of March while Ethereum is still lagging behind.
The potential launch of ETH futures on the CME could influence the price action of Ethereum, says a renowned trader.
“ETH futures on CME will have huge impact and this time up makes sense from cyclic perspective. Also makes sense to have ability to hedge ETH 2.0 stakes. So my guess is that it won’t be long before we see these futures launch.”
Several analysts agree that there is likelihood of Ethereum revisiting intra-rally highs within the $230 area. A renowned pseudonymous trader tweeted as follow regarding this target:
“Renko representation of the ETH breakout. I’m looking to try and tap into the outer band ($234ish) – this would line up with the 4h moving into the band for the second time.”