Ethereum Likely Set Its Local Low for the Year as Buyers Defend $500
Ethereum has been flashing signs of immense strength today, with the cryptocurrency surging up towards $550 as bulls try to erase the recent losses that came about due to the recent market-wide selloff.
This comes as Bitcoin also shows some signs of strength, with the benchmark cryptocurrency navigating towards $18,000 following its recent decline that sent it down to lows of $16,400.
Bitcoin is firmly leading Ethereum and the rest of the market. The potent reaction that both assets have seen after tapping their local lows does seem to be a bull-favoring sign.
One analyst is now noting that Ethereum is likely to see significantly further upside in the near-term, with its strength showing no signs of slowing down as bulls move to regain control of its trend.
He believes that $500 will prove to be a long-term local bottom for the crypto and that it will only see upside from here heading into the end of the year.
It is also possible that it will enter an accumulation phase between these lows and its current price level, which will bolster any uptrend in early-2021.
Ethereum Shows Signs of Strength as Buyers Take Aim at $600
At the time of writing, Ethereum is trading up just under 5% at its current price of $543. This marks a notable upswing from its recent lows of $490 set at the bottom of the recent selloff.
The ardent defense of $500 by bulls indicates that this is a strong support level that may continue bolstering its price action for the weeks to come.
So long as it consolidates above $500 and confirms this as a strong support level, there’s a strong possibility that it will see further upside.
Analyst: ETH Likely to Rally Higher Throughout Rest of 2020
He further added that he expects $500 to prove to be a long-term local low for the cryptocurrency that helps spark its next sustained uptrend.
“ETH / USD: Weekly chart looking excellent right now, while $650 resistance was rejected pretty harshly, now strong support is being show at $500 buyers defending aggressively… LTF expecting accumulation at $500 and hopefully this is a local low for the rest of the year.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
Ethereum’s near-term price action will likely depend largely on Bitcoin, which does seem to favor bulls at the moment, with the benchmark cryptocurrency now pushing up towards $18,000.
Featured image from Unsplash. Charts from TradingView.