Ethereum Could Be in a Precarious Position as Buyers Fail to Break Key Level

Ethereum Could Be in a Precarious Position as Buyers Fail to Break Key Level

  • Ethereum has been underperforming Bitcoin throughout the past couple of days, drifting lower while the benchmark crypto nears its 2020 highs
  • Higher risk assets like ETH may be seeing tempered price action because investors fear the sustainability of BTC’s latest push higher
  • If it can stabilize and see a continued bout of sideways trading, then assets like Ethereum may be able to push significantly higher
  • One trader is noting that until $460 is flipped back into support, however, ETH may be in a somewhat precarious position
  • He emphasized that a 4-hour candle close above this level is imperative for bulls

Ethereum has been woefully underperforming Bitcoin throughout the past few weeks – a trend that has persisted up until now, despite the recent strength seen throughout the DeFi sector.

Yesterday, when BTC’s price briefly broke below $16,000, investors panicked and sold ETH until it reached $440, which is when its downtrend halted, and it rebounded.

It is now trading around where it has been for the past week.

One trader is cautious about its near-term outlook, noting that the crypto needs to flip $460 back into support and post a high time frame close above it.

Bulls are in the process of once again surmounting this level, which could mean that upside is imminent in the near-term.

Ethereum Underperforms Bitcoin But Erases Yesterday’s Losses 

At the time of writing, Ethereum is trading up just over 2% at its current price of $459. Bulls are ardently trying to surmount its $460 resistance and reclaim this level as support.

Because Bitcoin is strong at the moment, there’s a strong possibility that this level will be broken and held above in the near-term.

If flipped back into support, it could also provide a base for the crypto to rally off of.

Analyst: ETH Remains in a Precarious Position Until $460 is Broken 

While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that he would like to see a 4-hour candle close above $460 before he flips long on the cryptocurrency.

“ETH / USD: Currently hard to determine if PA has S/R flipped back above $450 but for now it seems price is back above in the short term but still below key resistance at $460. I think patience is the best option here and wait for a few more hourly or 4H closes to find a setup.”

Image Courtesy of Cactus. Source: BTCUSD on TradingView.

Because Ethereum is in the process of shattering $460, the coming few hours could be quite telling as to whether or not it will post a high time frame close above this level.

Featured image from Unsplash.
Charts from TradingView.

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