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Ethereum showed signs of immense strength today, with the cryptocurrency climbing as high as $ 550 as the bulls try to erase the recent losses that have occurred due to the recent market-wide selloff.
This is done as Bitcoin is showing some signs of strength too, with the benchmark cryptocurrency hovering towards $ 18,000 following its recent drop which has led to lows of $ 16,400.
Bitcoin is firmly ahead of Ethereum and the rest of the market. The powerful reaction both assets saw after hitting local lows appears to be a bullish sign.
An analyst is now observing that Ethereum is likely to see a significant further upside in the near term, with its strength showing no signs of slowing as the bulls move to regain control of its trend.
He believes $ 500 will prove to be a long-term local fund for cryptocurrency and will only see an upside from now to the end of the year.
It is also possible that it enters an accumulation phase between these lows and its current price level, which will support any upward trend in early 2021.
Ethereum shows signs of strength as buyers aim for $ 600
At the time of writing, Ethereum is trading up just under 5% at its current price of $ 543. This marks a notable increase from its recent lows of $ 490 set at the bottom of the recent selloff.
The ardent $ 500 defense from the bulls indicates that this is a strong support level that may continue to strengthen its price action for the weeks to come.
As long as it consolidates above $ 500 and confirms it as a strong support level, there is a strong possibility that it will see further upside.
Analyst: ETH is likely to rise for the rest of 2020
While talking about the potential prospects of Ethereum, a trader explained which expects it to see some serious upside in the weeks leading up to the end of the year.
He further added that he expects $ 500 to prove to be a long-term local low for the cryptocurrency which helps trigger its next sustained uptrend.
“ETH / USD: The weekly chart looks excellent right now, while the resistance at $ 650 has been pushed back quite hard, strong support is now being shown from $ 500 buyers who are aggressively defending … LTF expects a build up to $ 500 and hopefully this is a local low for the rest of the year. “
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
Ethereum’s short-term price action will likely largely hinge on Bitcoin, which appears to be favoring the bulls at the moment, with the benchmark cryptocurrency now pushing towards $ 18,000.
Featured image from Unsplash. Charts from TradingView.
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