Ethereum has faced a bout of consolidation today as the aggregated crypto markets continue to attempt to determine which direction they will move next, and it is highly probable that in the near-term most major altcoins like ETH will closely track Bitcoin’s price action.
Analysts are currently noting that Ethereum may soon incur significant upwards momentum, but this possibility requires that its bulls bolster its price prior to its daily candle close later today.
Ethereum Surges Towards $180 as Bitcoin Consolidates
At the time of writing, Ethereum is trading down marginally at its current price of $177.80, which marks a slight rise from its daily lows of $174 that were set overnight.
Ethereum is currently trading significantly off of its recent highs of over $220 that were set in mid-September, although it is also important to note that it has recovered from its recent lows of under $160 that were set concurrently with Bitcoin’s drop to $7,800.
It does appear that ETH’s bulls and bears are currently locked in a tight battle that will determine which direction it trends next, as Big Cheds, a popular crypto analyst on Twitter, explained in a tweet from last night that the crypto is showing some signs of bearish divergence on its 12-hour chart.
“$ETH #Ethereum 12 hour – bearish divergence OBV vs Price,” he noted.
$ETH #Ethereum 12 hour – bearish divergence OBV vs Price pic.twitter.com/oniSOyarMS
— Big Cheds (@BigCheds) October 1, 2019
Analyst: ETH Needs to Surge Towards $181 Before Daily Close to Validate Bullish Possibility
Despite this potential bearish divergence, other analysts are noting that bulls have a chance to reverse the recent downtrend and propel Ethereum higher in the near-term, but only so long as it climbs above $181 before the daily close later today.
UB, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, telling his followers that he views a close above $181 as bullish for ETH, but also noting that a close below $174 would invalidate any bullishness.
“$ETH – I’ll be adding to my current Ethereum long on a Daily Close above low $181s. I’m looking for a move up to ~$200. My argument is invalid on a Daily Close below $174,” he explained.
$ETH – I’ll be adding to my current Ethereum long on a Daily Close above low $181s.
I’m looking for a move up to ~$200.
My argument is invalid on a Daily Close below $174. #Ethereum pic.twitter.com/FjSB8jJTm5
— UB (@CryptoUB) October 2, 2019
Because Ethereum’s price is currently at a pivoting point, how it trades in the coming hours and days will prove to be illuminating for how it trends throughout the second part of 2019, although it will likely follow Bitcoin’s lead in the near-term.
Featured image from Shutterstock.
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