Ethereum’s price action has been closely tracking that of Bitcoin over the past several days and weeks, which has allowed ETH to climb slightly today as it begins consolidating within the mid-$180 region.
One prominent analyst is now noting that he anticipates ETH to see an upside break in the near-term, which could lead it surging up to its strongest near-term resistance level that currently exists at $200.
Ethereum Enters Consolidation Phase in Mid-$180 Region
At the time of writing, Ethereum is trading up just under 2% at its current price of $186.90, which marks a decent climb from its daily lows of $182.
ETH’s recent upwards momentum has allowed it to climb significantly from its multi-day lows of under-$180 that were set alongside Bitcoin’s recent drop to $8,300, and it is highly probable that Ethereum’s close correlation to BTC will continue in the near-future as bulls attempt to push it past its near-term resistance at $8,700.
Assuming that Ethereum is able to continue climbing higher as the weekend wraps up, it is highly probable that $190 will be its immediate resistance level, as it had been struggling to break above this level for over a week in the time prior to its recent dip to $180.
One factor that may play into ETH’s near-term price action is that its 24-hour trading volume has dived nearly 50% according to data from TokenAnalyst.
“24H #ETH Network Stats: Price: $181.69 (-0.0%). $ETH On-Chain Volume: $170M (-47.5%). Active Senders: 189K (-9.3%). Active Recipients: 81K (-14.1%),” the analytics group noted in a recent tweet.
📢 24H #ETH Network Stats:
💲 Price: $181.69 (-0.0%)
💵 $ETH On-Chain Volume: $170M (-47.5%)
👈 Active Senders: 189K (-9.3%)
👉 Active Recipients: 81K (-14.1%)
Visit https://t.co/u90eafzR5J for more info
— TokenAnalyst (@thetokenanalyst) November 17, 2019
Analyst: ETH May Soon See Upside Break
In spite of the declining trading volume, it is important to note that Nik Patel, a popular cryptocurrency analyst on Twitter, explained in a recent blog post that he anticipates Ethereum to continue trading sideways for some time before eventually incurring an upwards break that could send it past its strong resistance at $200.
“Looking at ETH/USD, there really isn’t much to say: price remains compressed in a tight range between the 360-day moving average and $200 resistance. I am expecting a breakout to the upside shortly, after which I will look at potential long position entries,” he explained.
If ETH is to incur an upside break in the near-term, it is imperative that Bitcoin either stabilizes and trades sideways, or begins incurring some upwards momentum, as any further BTC downside will likely negatively impact Ethereum.
Featured image from Shutterstock.