Ethereum (ETH) has been closely tracking Bitcoin’s price action over the past several days and weeks, although it has been able to climb slightly today in spite of BTC’s bout of sideways trading around its current support level at $8,800.
Analysts are now noting that Ethereum needs to surge just over 5% from its current price levels before it reaches a point at which bulls are in firm control, and a failure to break above this near-term resistance level could signal that significantly further losses are inbound.
Ethereum Climbs Higher as Bitcoin Consolidates
At the time of writing, Ethereum is trading up just under 3% at its current price of $189, which marks a slight climb from its daily lows of $184 that were set yesterday.
This climb has come about in the midst of a consolidation period for Bitcoin, which has been trading sideways around $8,800 in the time following its recent drop below its previous support level at $9,000 that occurred earlier this past week.
Currently, Ethereum appears to be finding support at its 360-day moving average, which may be what is behind its slight climb today.
Nik Patel, a popular cryptocurrency analyst on Twitter, spoke about this in a recent blog post, explaining that ETH is currently establishing this moving average as a support level, and that it is currently trapped beneath resistance at $200.
“Looking at ETH/USD, we can see that resistance at $200 remains very much intact and price continues to bounce between it and the 360-day moving average, which is currently holding as support,” he said.
Analyst: Close Above $200 Could Spark ETH Uptrend
Currently, ETH is trading roughly 5% below its long-established resistance level at $200, which means that bulls could push the crypto to this level in one swift movement.
It is important to note that Patel further explained that he is waiting for ETH to close above $200 before he enters into any long positions, adding that a decisive close above this level could spark a fresh uptrend.
“I am patiently awaiting a daily close above $200 before I start looking for longs, and I fully expect this to be caused by movements in ETH/BTC over the coming weeks,” he noted.
How ETH trades against Bitcoin in the coming hours and days may offer significant insight into which direction Ethereum is going to trend in the coming weeks and months.