2020-7-20 22:00 |
Ethereum, much like Bitcoin, has been caught within the throes of an intense bout of sideways trading This has caused the cryptocurrency to largely hover around the lower boundary of its multi-month trading range, being unable to gain any clear and decisive trend in either direction Although many major digital assets have been able to kick off firm uptrends, ETH hasn’t been so lucky Analysts are now noting that Ethereum may be well-positioned to see some notable downside in the days and weeks ahead Ethereum has seen one of its tightest bouts of sideways trading that it has seen throughout its history. Since May, the cryptocurrency has been trading mostly between $230 and $250, only breaking out of this range on a few brief occasions. Throughout this period, it has been forming a tight correlation to Bitcoin. BTC’s bout of trading at the lower boundary of its long-held trading range has caused ETH to also trade just above its range-lows. Analysts are now noting that this boring price action is likely to come to a swift end in the near-term. As for which direction the next movement may send the crypto, one analyst is setting his sights on $200. Ethereum’s Unprecedented Bout of Sideways Trading May Soon Come to an End At the time of writing, Ethereum is trading down marginally at its current price of $234. This is around the level at which the cryptocurrency has been trading throughout the past week. Concurrently, Bitcoin is also trading just above the lower boundary of its trading range at $9,100. Because the two digital assets have formed a close connection to one another, where BTC goes next will likely provide ETH with a more definite trend as well. One analyst is noting that this lackluster price action may soon come to a rapid end. While pointing to Ethereum’s historical volatility, the respected analyst offered a chart showing that massive movements virtually always follow periods of consolidation this tight. Image Courtesy of Josh Olszewicz. Chart via TradingView. Here’s Why This Next Move Could Favor Bears As for where Ethereum’s imminent volatility could lead it, one analyst is noting that he is expecting downside. Within a chart he recently put forth, he set a near-term downside target at $200, highlighting the heavy resistance just above its current price level that has been stopping it from climbing higher. “Ethereum – Time to go swing short on ETH,” he explained. Image Courtesy of Calmly. Chart via TradingView. If this decline does occur, it will likely be the result of Bitcoin dropping lower as well. Featured image from Unsplash. Charts via TradingView.
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