A firm break above $ 246 could spark an intense rally that leads Ethereum price towards to new high level
Ethereum price has been almost in line with Bitcoin price for days and weeks, and this correlation doesn’t show any signs of a break. Now it seems that buyers may be laying the groundwork for ETH to see a noticeable rise. However, because ETH is currently on the verge of breaking above an important support level, much of this power may come from a buyer’s continued ability to hold ETH above $ 238.
ETH/USD 4-hour chart | Source: TradingView
ETH buyers try to protect important support for the Ethereum price
At press time, Ethereum is trading slightly lower at the current price of $ 237. This is around the level it has been trading for days and weeks, with buyers trying to gain any momentum force clearly in any direction.
This sideways transaction is primarily a result of Bitcoin’s extended consolidation in the region below $ 9,000. Until BTC gains some clear momentum, Ethereum will likely continue to consolidate.
An important level to watch over the near term is $ 238, since the bulls have been enthusiastically defending this support recently. Now it seems that this level is at risk of being broken.
If Ethereum closes the daily candle below, this could be a sign that it will drift down to the lower boundary of its trading range of about $ 130.
Assuming that it could end a day above this level, analyst Cactus noted that $ 246 is a resistance level that must be broken to trigger a breakout rally.
“ETH LTF Update: For the past 7 days it seems bears have failed to break back below $238 with any conviction, thinking we are currently in mini accumulation before another leg up… If bulls can take out $246 then momentum should take us a lot higher, expecting a breakout soon.”
$ETH LTF Update
For the past 7 days it seems bears have failed to break back below $238 with any conviction, thinking we are currently in mini accumulation before another leg up…
If bulls can take out $246 then momentum should take us a lot higher, expecting a breakout soon. pic.twitter.com/qzKyF1AU4t
— Cactus (@TheCryptoCactus) July 15, 2020
However, analysts are sharply increasing the price of Ethereum’s macro outlook compared to Bitcoin.
One prominent Ethereum skeptic cited in the report even noted that he is long on ETH/BTC despite believing ETH has extremely problematic fundamentals.
“ETH/BTC technicals are looking bullish so I’m long. (I still think ETH has extremely problematic fundamentals.)”
Tuur Demeester’s Chart via TradingView
The way Ethereum responds to $ 238 in the coming days will also provide some insight into the validity of its superior strength compared to its Bitcoin trading pair.
You can also check Ethereum Price here.
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