Reported By: Bitcoinist.com
- Bitcoin has been guiding the entire market higher, which has provided a tailwind for Ethereum that has lifted it higher as well
- The cryptocurrency is now pushing towards its high time frame resistance zone between $380 and $400
- How it responds to this level – should it be tested in the near-term – will offer insights into its outlook
- One analyst is noting that ETH is showing some positive signs of resilience following its recent dip below a key technical level
- This is particularly clear while looking towards its BTC trading pair
Ethereum has been closely following in the steps of Bitcoin and the aggregated crypto market. This correlation has proven to be positive today, as BTC is pushing towards $11,000 as most other altcoins also move higher.
Where ETH trends next may depend largely on how the benchmark cryptocurrency responds to the resistance between $11,000 and $11,200. A rejection here could be grim and lead to further losses, whereas a break above this level could propel the entire market higher.
While looking towards Ethereum’s price action, one analyst observed that it is showing signs of resilience following a technical breakdown, which could mean further gains are imminent.
Ethereum Pushes Towards Key Resistance as Buyers Regain Control
At the time of writing, Ethereum is trading up just over 2% at its current price of $365. This marks a notable surge from weekly lows of $317 that were set during a market-wide downturn.
The strength seen in the time following this capitulatory decline has been positive, and could indicate that bulls have a slight edge over bears.
In order for this to be confirmed, it is critical that the cryptocurrency is able to break above its high time frame resistance between $380 and $400. This level has catalyzed multiple strong rejections as of late.
ETH’s “Resilience” Could Help Lead It Higher – Analyst
While speaking about the cryptocurrency’s near-term outlook, one trader explained that it is surprisingly strong against its Bitcoin trading pair, despite a recent break below a crucial technical level.
He contends that this could mean further upside is imminent against BTC, which will be perpetuated if it continues showing signs of strength against its USD pair as well.
“ETH BTC: Surprisingly resilient after having lost that floor; if we begin trending back above red for a day or two I might look to average back into ETH.”
Image Courtesy of Bagsy. Chart via TradingView.
Bitcoin’s price action will likely continue having significant implications for that of Ethereum and other altcoins in the near-term.
As such, BTC must thwart any type of harsh rejection within the lower-$11,000 region.
Featured image from Unsplash. Charts from TradingView.