Analysts are now noting that the strong support Ethereum has established within the lower-$100 region may just be enough to send it higher in the days and weeks ahead, with one prominent trader explaining that it could soon rally up towards $140.
Despite this, there is a bearish technical formation that ETH is currently caught within that bulls need to invalidate, as an inability to do so could open the gates for further losses.
Ethereum Stable Around $115 as Bitcoin Shows Signs of Breaking Correlation with Global Markets
At the time of writing, Ethereum is trading down marginally at its current price of $114, which is around where it has been trading at throughout the past several days.
This stability has come about as a result of that seen by Bitcoin, which has been hovering within the lower-$5,000 region over the past couple of days, following a brief visit to lows of $4,600 this past Monday.
Importantly, it does appear that Ethereum is currently caught within a bear pennant despite its ability to find some stability, which could be a dire sign that means further downside is imminent.
Jonny Moe, a popular analyst, spoke about this in a recent tweet, telling his followers that this could be a bearish sign for the crypto in the near-term.
“If you’re leaning bullish, ETH sure looks like a cleaner pennant,” he said.
If you’re leaning bullish, $ETH sure looks like a cleaner pennant. pic.twitter.com/N5tMT7lumy
— Jonny Moe (@JonnyMoeTrades) March 18, 2020
ETH Could Rally Higher if Support Holds
Michaël van de Poppe, another well-respected cryptocurrency analyst and trader, explained in a recent tweet that he believes the support Ethereum has established within the lower-$100 region could be enough to send it rallying higher in the days ahead.
“Similar here for Ethereum. Holding green and I expect a test of $135-140 to occur. However, losing green and I’ll be targeting $80/92/103 as next levels, probably around the lows,” he explained while pointing to the levels on the below chart.
Similar here for Ethereum.
Holding green and I expect a test of $135-140 to occur.
However, losing green and I’ll be targeting $80/92/103 as next levels, probably around the lows. pic.twitter.com/ntSYB8ZG3u
— Crypto Michaël (@CryptoMichNL) March 18, 2020
If bulls are able to defend the key aforementioned support and push Ethereum higher in the near-term, it will invalidate the bear pennant discussed by Moe, and open the gates for significantly further upside.
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