Ethereum could be well positioned to see a noticeable hike in the days and weeks ahead, despite its overt signs of weakness brought on by its recent decline in the under $ 200 region.
Analysts now note that its market structure still favors buyers as long as it remains above $ 185, and that continued defense of this support may be enough to trigger the next major uptrend. of cryptocurrency.
One such analyst even notes that this next potential recovery could drive the cryptocurrency to $ 290, which is a critical level as it is the highest level of the current year. ETH.
It is important to keep in mind that Ethereum's moving averages continue to tell a bearish story regarding the macro trend in cryptography, and buyers will need to start to gain significant strength in order to bring back these MAs in their favor.
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Ethereum hovers around $ 200 after the last sale
At the time of this writing, Ethereum is trading 1% at its current price of $ 200. This marks a notable rise from the daily lows of $ 192 that were set yesterday when crypto started to experience a downward momentum.
However, buyers were able to quickly absorb this selling pressure and were then able to propel ETH above $ 200.
Crypto is currently trading well below its multi-week highs of over $ 230, with its drop from those highs, which leads it to see a huge drop in its Bitcoin trading pair.
Its weakness against the BTC also weighed on its USD currency pair, which also made its moving averages blink of signs of immense macroeconomic weakness.
A trader recently spoke about this development in a recent tweet, explaining that it is "difficult to find a bullish macro argument" for Ethereum due to its moving averages.
"ETH: Difficult to find a macro bullish argument with MA HTFs like this," he said, pointing to the graph below.
Mac image courtesy
ETH is still well positioned to rally despite manifest weakness
Another analyst recently explained that he still believes that the cryptocurrency is well positioned to see further upside as long as it trades above $ 185.
He noted that a continuous defense of this level could drive crypto to $ 250 or even $ 290.
"Ethereum: I'll take it. As long as we stay above $ 185 (and even between $ 168 and $ 173), I think ETH will start to progress towards February / March levels. Targets should be $ 250 / $ 285-290. "
Image courtesy of Crypto Michael
The same analyst also added that Ethereum should be able to bear a strong uptrend as long as it remains above its 100 and 200 day moving averages on its daily chart.
"As long as the Daily's 100/200-MA remains supportive, the trend should be upward and we can expect an upward continuation."
Featured image from Unplash.