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Ethereum saw a slight overnight rally that allowed it to move back towards its resistance within the lower-$130 region. This movement came about in tandem with that seen by Bitcoin, which surged all the way up to highs of $6,700 before reeling back towards $6,000.
This recent price action seems to confirm that ETH, BTC, and most other cryptocurrencies are currently caught within bouts of range-bound trading, as they may currently be seeking direction from the stock market.
One analyst is noting that Ethereum’s overnight surge has led it up to a key resistance level, which means that further momentum here could be just what is needed for it to post some notable near-term gains.
Ethereum Rallies to Key Resistance as Crypto Market Guards Against Further Downside
At the time of writing, Ethereum is trading up just over 2% at its current price of $130, which marks a notable climb from daily lows of $122 that were set late-yesterday when bears attempted to push the crypto back into the lower-$100 region.
Bulls were able to guard against this decline, however, and subsequently pushed the cryptocurrency up to highs of roughly $134, which is where it faced a slight rejection that led it down to its current price levels.
In the near-term, analysts do believe that ETH’s current price region may prove to be insurmountable, and a strong rejection here could lead the crypto to plummet to as low as $100.
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that losing ETH’s current levels could lead it to see a notable decline of 20% or more.
“Ethereum: Similar view as on BTC. If we want to have a short-term bounce, I think this is the area we should be watching. Bounce up? Eyes first on $130 and $134. Losing this level and I’ll be watching $102-105 and $94,” he noted.
Similar view as on $BTC.
If we want to have a short term bounce, I think this is the area we should be watching.
Bounce up? Eyes first on $130 and $134.
Losing this level and I'll be watching $102-105 and $94. pic.twitter.com/XZblt7EHDj
— Michaël van de Poppe (@CryptoMichNL) March 23, 2020
Here’s the Key Factors to Watch for Insight into Where ETH Will Go Next
Where Ethereum trends next will be highly dependent on Bitcoin, which has been firmly guiding the aggregated cryptocurrency market over the past several days and weeks.
If Bitcoin is able to maintain above $6,000 and once again makes a bid at its key resistance in the upper-$6,000 region, it is probable that Ethereum will move in tandem and will also attempt to break through its key resistance.
Whether or not this occurs will likely depend on the stock market, as BTC has formed an uncanny correlation to it over the past couple of weeks, meaning that a further extension of its ongoing downtrend could lead BTC and Ethereum to reel significantly lower.
Featured image from Shutterstock.
