Ethereum price may first need to see a deep pullback before its price can push any higher

Ethereum price saw a massive rally yesterday, allowing it to break out of previous resistance at $ 400. From there, ETH started to rise almost 10% stronger until it hit the $ zone. 430 – position where ETH found some short term resistance. However, traders should not be in too much of a hurry, as there is a high chance that ETH will see a deep drop before the price bounces again.

Ethereum price could drop to $ 360 before bouncing back up

Ethereum is one of the biggest performing cryptocurrencies of the past 24 hours. Yesterday, after consolidating around $ 390 for a long period of time, ETH spiked to the highs of $ 430. This recovery happened suddenly and unexpectedly, sending many investors off guard. because it’s a bit random.

Parallel to this typical price move, most other cryptocurrencies remained stagnant, though ETH helped create a breeze that propelled BTC to the zone above $ 11,000. Analysts are now noting that it may be ready to see a sharp pullback before it can make any further bumps.

This pullback could also confirm an extremely bullish accumulation pattern – as long as the bulls defend its primary support.

At the time of writing, Ethereum price is hovering around $ 440, up almost 4% over the past 24 hours. The momentum it arose yesterday allowed it to test a high of $ 435 on multiple occasions, but it has yet to settle above $ 440.

While talking about this, analyst Cactus explained he believes it may need to see a slight drop to $ 400 before it can move higher.

He said:

“ETH / USD: Weekly close looking completely nuts right now, I guess $475 would be the next major level of resistance. Probably expect a pullback to around $400 level before the end of the month to confirm this level as support but overall this is looking more bullish than ever.”

ethereum-price-may-first-need-to-see-a-deep-pullback-before-its-price-can-push-any-higher

Another analyst also forecasts a short-term drop, but he believes that the next plunge is part of the bullish accumulation pattern that Ethereum has formed later this year.

As seen on the chart below he put out, this subsequent drop could lead the cryptocurrency into the $ 360 zone – which has been established as a platform support in many cases.

ethereum-price-may-first-need-to-see-a-deep-pullback-before-its-price-can-push-any-higher1

Capo of Crypto Chart via TradingView

Even if Ethereum faces a short-term pullback, it looks like the cryptocurrency is well-positioned to see further price gains within the macro timeframe.

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