Ethereum has shown signs of tremendous strength today, with the cryptocurrency skyrocketing to $ 550 as bulls seek to erase the recent losses created as a result of the recent market-wide selloff.
This is because Bitcoin is showing some signs of strength as well, with the benchmark cryptocurrency navigating to $ 18,000 after the recent drop that sent it to lows of $ 16,400.
Bitcoin is leading Ethereum and the rest of the market firmly. The strong reaction both assets have seen after tapping their local lows appears to be a positive sign.
An analyst now notes that Ethereum is likely to see significant further upwards in the near term, with its strength showing no signs of slowing down as bulls move to regain control of its trend.
He believes $ 500 will prove to be a local bottom for the crypto in the long run and it won’t go up from here until the end of the year.
It is also possible that it will enter an accumulation phase between these lows and the current price level, which will reinforce any upward trend in early 2021.
Ethereum is showing signs of strength as buyers aim for $ 600
At the time of writing, Ethereum is trading just under 5% at its current price of $ 543, marking a notable rise from the recent lows of $ 490 that were seen at the low end of the recent sell-off.
The fiery defense of USD 500 by bulls indicates that this is a strong level of support that may continue to strengthen the price action in the coming weeks.
As long as it consolidates above USD 500 and confirms this as a strong support level, there is a good chance it will see further upward.
Analyst: ETH is likely to rise higher for the rest of 2020
He added that he expects $ 500 to turn out to be a long-term local low for the cryptocurrency helping to kick-start the next sustained uptrend.
ETH / USD: The weekly chart looks excellent right now, while the USD 650 resistance was turned down quite harshly, now strong support is shown for USD 500 buyers aggressively defending … LTF expects USD 500 to accumulate and hopefully this will be a local low for the rest of the year. “
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
Ethereum’s price action in the near term is likely to depend largely on Bitcoin, which seems to favor bulls at this point, with the benchmark cryptocurrency now climbing to $ 18,000.
Featured image from Unsplash. Charts from TradingView.