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- Ethereum has actually witnessed rather tepid price action, despite Bitcoin hitting its highs since the beginning of the year.
- While the coin rose 1.3% on the last day, it is still a handful of percentage points below local highs.
- Analysts fear Ethereum could face a stronger pullback in the days to come as it fails to overcome key resistances.
- A trader suggested that the coin could drop to $ 380-390 as it failed to break out of the summer highs of $ 470-490.
- ETH falling to $ 380-390 from the current price of $ 465 will mark a correction of at least 16.5%.
- Bitcoin does not need to fall in tandem with Ethereum.
Ethereum could undergo a retracement as the key resistance is labeled … twice
Ethereum has actually witnessed rather tepid price action, despite Bitcoin hitting its highs since the beginning of the year. ETH is currently trading up 1.3% over the past 24 hours, although it remains a handful of percentage points below its local highs and below the year-to-date high of $ 490.
Analysts fear Ethereum could face a stronger pullback in the days to come as it fails to overcome key resistances.
A cryptocurrency analyst shared the chart below on November 12, describing ETH’s price action over the past few months. The chart shows that ETH is currently above a high support in the key range, although the problem is that the coin has hit a summer high in the $ 470-490 region. Indeed, it touched that region twice and failed to break through both times, posting wicks in that range instead of closing the candle above.
He thinks this could be a sign that Ethereum has hit its medium-term high and will therefore face a decline in the $ 380-390 region.
ETH falling to $ 380-390 from the current price of $ 465 will mark a correction of at least 16.5%. Bitcoin doesn’t need to come down in tandem with Ethereum, in particular.
Analysts think that BTC could significantly outperform ETH going forward, enough where Bitcoin could actually climb higher as ETH corrects. However, whether this will work out remains to be seen.
Chart of ETH's price action over the past few weeks with analysis by crypto trader TraderKoz (@TraderKoz on Twitter). Source: ETHUSD from TradingView.com
The ETH2 catalyst could drive prices up
While there is this bearish technical catalyst, analysts think the launch of ETH2 will push Ethereum higher as it is likely to entice people to increase their exposure to ETH.
ETH2 will give Ethereum holders the opportunity to earn a regular return on their ETH by running a validation node. The validation nodes in this new system replace the miners.
Featured Image from Shutterstock Price tags: ethusd, ethbtc, Charts from TradingView.com Analysts Fear Ethereum Has Topped After $470 Resistance is Tapped Twice
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