This upwards momentum has led ETH to rapidly approach a key resistance level that bulls may struggle to surmount in the near-term.
Multiple analysts are now noting that it is a strong possibility that the crypto sees a violent rejection at this level, which could lead it to see a capitulatory decline towards the support that has been established around $100.
Ethereum Rallies Past $130 as Market Rebounds, But Key Resistance Fast Approaches
At the time of writing, Ethereum is trading up just over 2% at its current price of $132, which marks a notable climb from daily lows of $125 that were set yesterday in tandem with Bitcoin’s decline to $5,800.
From this point, ETH has been able to garner some decent upwards momentum, although this has shown some signs of stalling after it touched its daily highs of $133 just a few hours ago.
TraderXO – a popular cryptocurrency trader on Twitter – explained in a recent tweet that he believes Ethereum will climb higher in the hours ahead if Bitcoin is able to push up towards $6,600, although he believes this movement will be followed by a strong retrace down towards $106.
“ETHUSD: If btc kicks on to 65s – 66s then expecting ethusd to follow. Run some local highs, enter on the rejection, blue arrows,” he explained.
If btc kicks on to 65s – 66s then expecting ethusd to follow.
Run some local highs, enter on the rejection, blue arrows pic.twitter.com/jSS6UuuyMM
— TraderXO (@TraderX0X0) March 30, 2020
Analysts Agree: A Rejection at Resistance Will Be Dire for ETH
Other traders have offered a similar sentiment to TraderXO, with one noting that $136-138 is the key level that bulls must surmount if they want to catalyze a movement up towards $159. He further notes that a rejection here, however, will likely lead the crypto towards $100.
“ETH: On the BTC pair: Nothing changed, still in between levels. Flipping 0.022 would make me somewhat bullish. On the USD pair: approaching resistance. Breaking and flipping $136-138 and we can target $159. Rejecting -> Targeting $103-105.”
Image Courtesy of Crypto Michaël
It does appear that where major altcoins like Ethereum trend in the near-term will be partially dependent on Bitcoin’s price action, but it still remains unclear as to whether the resistance ETH faces in the upper-$130 will be insurmountable.
Featured image from Shutterstock.