Ethereum has been able to secure a relatively strong foothold within the $180 region over the past several days and weeks, with its multi-week uptrend allowing it to post consistent gains in tandem with Bitcoin and other major altcoins.
It is important to note that Ethereum could now be on the cusp of posting a major technical breakout, and its reaction to its ongoing test of a key resistance level could provide significant insight into just how far ETH’s ongoing rally will extend.
Ethereum Taps Key Technical Resistance Level; A Break Above Could Catalyze a Massive Movement
At the time of writing, Ethereum is trading up just under 1% at its current price of $182, which marks a notable climb from weekly lows of $160 that were set around this time last week.
The cryptocurrency’s recent uptrend has been a steady upwards grind rather than a parabolic rally, which makes its recent rally appear to be especially sustainable.
It does appear that the mid-$180 region is a resistance region for the cryptocurrency, however, and it also seems as though ETH is currently forming a tremendously close correlation with BTC at the moment.
One other key resistance level that Ethereum is currently approaching is its 200-day moving average, which has been a level that has been catalyzing selloffs since 2019.
Trading Tank – a popular cryptocurrency analyst on Twitter – spoke about this level in a recent tweet, saying:
“ETH Coming up on an important level if it can break out of this daily tightening pattern. The 200EMA has stopped each prior move up. Flip that and it can test the blue box above. Flip that and you have a change in macro market structure and alts should be absolutely flying.”
$ETH Coming up on an important level if it can break out of this daily tightening pattern.
The 200EMA has stopped each prior move up. Flip that and it can test the blue box above.
Flip that and you have a change in macro market structure and alts should be absolutely flying. pic.twitter.com/052UV82fKP
— Trading Tank (@TradingTank) February 1, 2020
In addition to currently pushing up against the 200-day moving average, Ethereum is also just beneath a multi-year descending trendline that has been hampering its price action.
Galaxy, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is entering ETH position at $180 with a $350 target.
“Buying $ETH here at $180 and looking to sell at $350,” he said while pointing to the chart seen below.
Buying $ETH here at $180 and looking to sell at $350. pic.twitter.com/4shX2yruVV
— Galaxy (@galaxyBTC) January 31, 2020
Although BTC’s near-term price action may hold some sway over that of ETH, it is highly probable that Ethereum will soon be able to see a massive extension of its recently incurred uptrend.