- Ethereum has actually seen quite a tepid bout of price action despite Bitcoin pressing to new year-to-date highs.
- While the coin is up 1.3% in the past day, it is still a handful of percent below local highs.
- Analysts are fearful that Ethereum could face a stronger pullback in the days ahead as it fails to pass key resistances.
- One trader suggested that the coin could drop to $380-390 as it failed to pass the summer highs of $470-490.
- ETH dropping to $380-390 from the current price of $465 would mark a correction of at least 16.5%.
- Bitcoin does not need to drop in tandem with Ethereum.
Ethereum Could Suffer a Retracement as Key Resistance Is Tagged… Twice
Ethereum has actually seen quite a tepid bout of price action despite Bitcoin pressing to new year-to-date highs. ETH currently trades up 1.3% in the past 24 hours, though it remains a handful of percentage points below its local highs and below the year-to-date highs of $490.
Analysts are fearful that Ethereum could face a stronger pullback in the days ahead as it fails to pass key resistances.
One crypto-asset analyst shared the chart sen below on November 12th, depicting ETH’s price action over recent months. The chart shows that ETH is currently sitting above a key range high support, though the issue is, the coin tapped the summer highs in the $470-490 region. In fact, it tapped that region twice and failed to break through both times, posting wicks in that range instead of candle closes above.
He thinks that this could be a sign that Ethereum has topped on a medium-term basis and will thereby face a drop to the $380-390 region.
Analysts think that BTC could dramatically outpace ETH moving forward, enough where Bitcoin could actually surge higher as ETH corrects. Whether this plays out, though, remains to be seen.
Chart of ETH's price action over the past few weeks with analysis by crypto trader TraderKoz (@TraderKoz on Twitter). Source: ETHUSD from TradingView.com
ETH2 Catalyst Could Drive Prices Higher
While there is this bearish technical catalyst, analysts think that the launch of ETH2 will drive Ethereum higher as it is likely to entice individuals to increase their exposure to ETH.
ETH2 will give Ethereum holders the opportunity to earn a regular return on their ETH by running a validator node. Validator nodes in this new system replace miners.
Featured Image from Shutterstock Price tags: ethusd, ethbtc, Charts from TradingView.com Analysts Fear Ethereum Has Topped After $470 Resistance is Tapped Twice