Ethereum’s price action has been largely guided by that of Bitcoin over the past several days, and ETH’s bulls are now showing some signs of losing strength as the crypto inches lower today. This potential bearishness comes as the crypto sees an influx of network activity and heightened trading volume.
Analysts are now noting that there is a chance Ethereum drops as low as $160 in the near term if it fails to decisively break above the upper boundary of a bullish ascending triangle that it is currently trading within.
Ethereum Stable in Mid-$180 Region as Network Activity Blossoms
Ever since Bitcoin incurred its parabolic rally from lows of $7,300 to highs of $10,600, Ethereum has been closely tracking BTC’s price action, and is currently sitting below its recent highs of just under $200 that were set at the peak of the rally.
This massive volatility has helped ETH garner some increased network activity, however, as TokenAnalyst – a popular analytics group on Twitter – recently noted that the number of active senders and recipients both rose roughly 14% over the past 24-hours, while its on-chain volume surged a whopping 150%.
“24H #ETH Network Stats: Price: $183.88 (+0.8%) $ETH On-Chain Volume: $629M (+149.6%) Active Senders: 238K (+13.6%) Active Recipients: 101K (+14.0%),” they noted.
📢 24H #ETH Network Stats:
💲 Price: $183.88 (+0.8%)
💵 $ETH On-Chain Volume: $629M (+149.6%)
👈 Active Senders: 238K (+13.6%)
👉 Active Recipients: 101K (+14.0%)
Visit https://t.co/u90eafzR5J for more info
— TokenAnalyst (@thetokenanalyst) October 29, 2019
ETH Nears Apex of Bullish Ascending Triangle
While looking towards Ethereum’s 4-hour candle chart, the cryptocurrency is currently caught within a bullish ascending triangle that is likely to be resolved in the coming several hours.
Josh Olszewicz, a popular cryptocurrency analyst on Twitter, noted in a recently posted chart that an upwards break could lead the crypto to just over $200, while a downwards break could lead it reeling to lows of $160.
asc tri pic.twitter.com/QgcPx1c7ZC
— Josh Olszewicz (@CarpeNoctom) October 29, 2019
In the near-term, how Ethereum responds to the aforementioned triangle that it is currently trading within will likely be largely dependent on Bitcoin, as a break below BTC’s key near-term support levels within the lower-$9,000 region could cause the entire crypto market to cut deep into its recent gains.
Featured image from Shutterstock.