After incurring an incredibly intense uptrend that led Ethereum to highs of over $175 yesterday, ETH has lost some of its momentum and has declined below $170, with this drop coming about concurrently with that seen by Bitcoin overnight.
In the near-term, it does appear that ETH’s bulls may have slightly overextended themselves, as the crypto is currently flashing some signs of technical weakness.
In spite of this, it is important to note that there is one fundamental factor that could bolster Ethereum in the days and weeks ahead, with its continually rising futures trading volume being a sign of vitality amongst investors.
Ethereum Inches Lower as Technical Strength Flashes Some Bearish Signs
ETH’s drop from these highs has come in tandem with that seen by Bitcoin, which has fallen from highs of $7,500 to its current position within the lower-$7,000 region.
In the near-term, Ethereum’s decline from these highs does seem to suggest that bulls have lost their momentum, and that the crypto may need to move back towards the lower-$100 region before it finds enough support to extend its uptrend.
One analyst mused this possibility in a recent tweet, explaining that the crypto may test $125 or even $110 before it continues climbing higher, with its key resistance hurdle currently existing around $185.
“Ethereum: Nice break to the upside, but not convinced we won’t see $125-130 for tests (or $110) for confirmation. Next hurdle to take is the $185-193 area. Looking for shorts in these zones (confluent with BTC movements). Holding $151-155 = long entry time.”
ETH Sees Growing Activity Amongst Futures Traders: Bullish?
One fundamental factor that should be considered in the near-term is that ETH has seen rising futures trading volume across…