Like Bitcoin and most other leading cryptocurrencies, ETH has stalled for the past few weeks. The altcoin has consolidated around ~ $ 230, unable to breakout in both directions.
However, analysts are saying that the ETH chart seems to be bearish. An analyst believed that it is currently in an ominous position due to a strong rejection at an important horizontal level.
ETH price action looks ominous
Leading technical analyst at crypto research firm Blockfyre, Pentoshi, recently said that the recent ETH price action seems ominous because it was rejected at $ 250:
“Zoomed out 3D that top is ominous. Maybe a short term bounce coming but eh downside seems so favorable”.
$ETH ZOOMED out 3D that top is ominous. Maybe a short term bounce coming but eh downside seems so favorable. Really believe better entries are coming for some damn good longs for 2.0 and what will be locked up. Just not yet. pic.twitter.com/bRyqX5TXIO
— ₿ Pentoshi (@Pentosh1) June 17, 2020
As the chart shows, $ 250 has been an important area for cryptocurrencies over the past few months and also acted as an important level during the previous bull run.
Pentoshi is not the only one who thinks that ETH is about to witness a correction.
Analyst Edward Morra said that Ethereum was basic seasonality, it rallied the price in the first half of the year, then adjusted for the rest.
If this pattern exists in 2020, the leading altcoin is ready to experience a correction in the next six months that is likely to bring it back to the ~ 100 dollar range.
Source: Edward Morra / Twitter
Investors are betting on the bull case
Even so, Ethereum investors seem to be betting on upside.
Blockchain analysis firm Santiment reported on June 17 that addresses related to ETH mining tools are accumulating the altcoin.
“ETH miners appear to be back in accumulation mode. After a mild bag dump around the time ETH began to consolidate, miners have resumed accumulating for the time being”.
? $ETH miners appear to be back in accumulation mode. After a mild bag dump around the time $ETH began to consolidate, miners have resumed accumulating for the time being. Mining pools increased their collective balance by 15,000 $ETH in the past 2 weeks. https://t.co/acbulF3Q2c pic.twitter.com/asDJeBd1xE
— Santiment (@santimentfeed) June 17, 2020
Mining pools increased their collective balance by $ 15,000 ETH in the past 2 weeks, equivalent to ~ $ 2.5 million, indicating that the miners are expecting medium-term price increases.
Smaller market participants are also very optimistic. Glassnode recently reported that “the number of ETH addresses holding at least 0.1 coins (~ $ 23) has reached ATH of 3,002,281,000”.
Read more:
- The market is well poised to see further upside in the days and weeks ahead and so does ETH price
- As Ethereum continually delayed Ethereum 2.0, the upstart competitor Cardano is getting ready to go live