Ethereum has been able to continue inching higher today after ETH outperformed Bitcoin and the aggregated crypto market yesterday. This upwards movement is very tempered, however, and the crypto is still struggling to break back above $170.
Analysts are now noting that Ethereum could see one more short-term pullback towards $155 before it is able to extend its recent uptrend.
The bounce that results from this movement to $155 could be enough to propel it past a key multi-year descending trendline, with a sustained break above this level potentially opening the gates for a parabolic movement.
Ethereum Inches Higher, But Firm Resistance Tempers Uptrend
At the time of writing, Ethereum is trading up just under 1% at its current price of $168, which marks a slight climb from daily lows of just under $167 that were set overnight.
The cryptocurrency has been struggling to break back above $170 in the time following its last major selloff that occurred last Saturday when ETH dipped from highs of $178 to lows of $162.
Yesterday, Ethereum did attempt to push above $170, although this was met with a sharp selloff that instantly led it to drop back down to the mid-$160 region.
Calmly, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he does not believe ETH is quite ready to set fresh local highs, and that it may need to drop to its key support at $155 before it climbs to $180.
“Ethereum / ETH – I’m still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down. I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180,” he explained while pointing to the below chart.
#Ethereum / $ETH – I’m still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down
I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180 pic.twitter.com/8JFOptee8X
— Calmly | full-time trader (@im_calmly) January 22, 2020
Will ETH’s Next Movement to $180 Catalyze a Parabolic Rally to $850?
Galaxy, a widely respected cryptocurrency analyst, explained that ETH is currently on the cusp of breaking a multi-year trendline, and that a sustained weekly close above this level could lead it to rally up to $850.
“ETH is weeks away from breaking out its 2-year downtrend. Possible Bull signal incoming next week. February is take-off month,” he said while pointing to the target seen on the below chart.
$ETH is weeks away from breaking out its 2-year downtrend.
Possible Bull signal incoming next week.
February is take-off month. pic.twitter.com/G7MUzIA03Y
— Galaxy (@galaxyBTC) January 21, 2020
If Ethereum does post a highly bullish response to its support at $155, its sharp upwards movement to $180 could be enough to break the aforementioned trendline, thus sparking its next major upwards cycle.
Featured image from Shutterstock.