Ethereum saw a slight overnight rally that allowed it to move back towards its resistance within the lower-$130 region. This movement came about in tandem with that seen by Bitcoin, which surged all the way up to highs of $6,700 before reeling back towards $6,000.
This recent price action seems to confirm that ETH, BTC, and most other cryptocurrencies are currently caught within bouts of range-bound trading, as they may currently be seeking direction from the stock market.
One analyst is noting that Ethereum’s overnight surge has led it up to a key resistance level, which means that further momentum here could be just what is needed for it to post some notable near-term gains.
Ethereum Rallies to Key Resistance as Crypto Market Guards Against Further Downside
At the time of writing, Ethereum is trading up just over 2% at its current price of $130, which marks a notable climb from daily lows of $122 that were set late-yesterday when bears attempted to push the crypto back into the lower-$100 region.
Bulls were able to guard against this decline, however, and subsequently pushed the cryptocurrency up to highs of roughly $134, which is where it faced a slight rejection that led it down to its current price levels.
In the near-term, analysts do believe that ETH’s current price region may prove to be insurmountable, and a strong rejection here could lead the crypto to plummet to as low as $100.
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that losing ETH’s current levels could lead it to see a notable decline of 20% or more.
“Ethereum: Similar view as on BTC. If we want to have a short-term bounce, I think this is the area we should be watching. Bounce up? Eyes first on $130 and $134. Losing this level and I’ll be watching $102-105 and $94,” he noted.
Similar view as on $BTC.
If we want to have a short term bounce, I think this is the area we should be watching.
Bounce up? Eyes first on $130 and…