Ethereum’s intense 2020 uptrend appears to have continued strong after the cryptocurrency experienced some turbulence earlier this week. The overnight rally experienced by ETH also allowed the crypto to push against a key resistance level that has been suppressing its price action.
Analysts are now noting that how ETH closes its weekly candle will be critical for determining which direction it will trend in the weeks ahead.
Because Ethereum has been moving in tandem with Bitcoin over the past several days, it is highly probable that its near-term fate will be largely dependent on where BTC moves next.
Ethereum Rallies to $270 as Crypto Market Grows Bullish
Overnight, Ethereum and the aggregated market incurred some notable momentum that sent virtually all cryptocurrencies surging from their weekly lows.
This momentum allowed Ethereum to surge from daily lows of $260 to highs of $275, before finding some resistance that has led it to decline to its current price of $270.
In the near-term, ETH has been moving closely in tandem with Bitcoin, with the correlation strengthening this past Wednesday when the market incurred a swift selloff that was sparked by Bitcoin’s flash crash from $10,200 to $9,200.
Similarly, Ethereum plummeted from highs of $282 to lows of $252, which is where it was able to find some support that has helped it climb higher in the time since.
It does appear that ETH faces some strong resistance between $275 and $280, and whether or not it is able to surmount this resistance will likely rest largely on whether Bitcoin is able to recapture its position above $10,000.
ETH Must Close Above This Key Level if Bulls Want to Maintain Their Strength
In order for this bullish momentum to extend further, it is imperative that bulls close the cryptocurrency’s weekly candle above $275.
Teddy, a popular cryptocurrency analyst on Twitter, spoke about the importance of this level in a recent tweet, telling his followers that a close above this price would be “beyond bullish.”
“ETH: Weekly close above 275 beyond bullish. Anything below I see it as a rejection from a key resistance. Suggesting that it may revisit 225 area as a retest of previous resistance as support,” he explained.
The next few hours will be critical for determining the fate of Ethereum’s mid-term trend, as a close beneath this level could suggest that the recent attempt to continue its uptrend has failed and that further downside is imminent.