Analysts are now noting that Ethereum could see one more short-term pullback towards $155 before it is able to extend its recent uptrend.
The bounce that results from this movement to $155 could be enough to propel it past a key multi-year descending trendline, with a sustained break above this level potentially opening the gates for a parabolic movement.
Ethereum Inches Higher, But Firm Resistance Tempers Uptrend
At the time of writing, Ethereum is trading up just under 1% at its current price of $168, which marks a slight climb from daily lows of just under $167 that were set overnight.
The cryptocurrency has been struggling to break back above $170 in the time following its last major selloff that occurred last Saturday when ETH dipped from highs of $178 to lows of $162.
Yesterday, Ethereum did attempt to push above $170, although this was met with a sharp selloff that instantly led it to drop back down to the mid-$160 region.
Calmly, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he does not believe ETH is quite ready to set fresh local highs, and that it may need to drop to its key support at $155 before it climbs to $180.
“Ethereum / ETH – I’m still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down. I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180,” he explained while pointing to the below chart.#Ethereum / $ETH – I’m still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down
I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180 pic.twitter.com/8JFOptee8X
— Calmly | full-time trader (@im_calmly) January 22, 2020
Will ETH’s Next Movement to $180 Catalyze a Parabolic Rally to $850?
Galaxy, a widely respected cryptocurrency analyst, explained that ETH is currently on the cusp of breaking a multi-year trendline, and that a sustained weekly close above this level could lead it to rally up to $850.
“ETH is weeks away from breaking out its 2-year downtrend. Possible Bull signal incoming next week. February is take-off month,” he said while pointing to the target seen on the below chart.
$ETH is weeks away from breaking out its 2-year downtrend.
Possible Bull signal incoming next week.
February is take-off month. pic.twitter.com/G7MUzIA03Y
— Galaxy (@galaxyBTC) January 21, 2020
If Ethereum does post a highly bullish response to its support at $155, its sharp upwards movement to $180 could be enough to break the aforementioned trendline, thus sparking its next major upwards cycle.
Featured image from Shutterstock. The post appeared first on NewsBTC.