Ethereum Rolled Back To $230: Analysts Are Convinced That This Is A Consolidation Before The Breakthrough
The Ethereum fights for a price range above $250 continues. Consolidation with Bitcoin has made adjustments to the price movement of Ethereum: if the last week the bullish impulses were strong enough, then today the crypto asset has been rolled back. At the same time, several cryptanalysts are sure that the Ethereum price reversal is short-term and does not bear the risk of testing a lower support level.
Is Ethereum’s big breakthrough canceled?
Despite attempts to break above $250, over the past 24 hours, the price of Ethereum has fallen by more than 5% to $231. Ethereum’s trading range may change next week. But cryptanalysts are not yet ready to give a clear forecast in which direction the price of Ethereum will move: up or down.
One of the factors that can affect the Ethereum exchange rate in the short term is the correlation with Bitcoin. The altcoin market now largely depends on the behavior of the flagship cryptocurrency. As the results of the past two weeks have shown, the relative stability of Bitcoin below $10,000 has become a driver for the growth of some altcoins.
Some analysts suggest that if Bitcoin follows a bearish scenario and falls to a support level of $9,300, altcoins can use this time to build up their strength. Previously, it was recorded that re-testing this price region for Bitcoin is a “trap”, since then it is very difficult for bulls to quickly restore the market position of a crypto asset.
Also, the price of Ethereum directly depends on the trading activity of buyers. With an increase in the volume of altcoin purchases, the dominance of Bitcoin in the cryptocurrency market may stagger.
Will there be an Altseason in 2020?
Leading analyst Luke Martin continues to believe that Ethereum expects a big rally this year, even despite the current rollback of prices back. He believes that this growth in the leading altcoin will become the driver of a successful season for all crypto derivatives and can favorably affect their market capitalization. Luke Martin noted:
“Perhaps I was a little mistaken in assuming that Ethereum is about to fly up. But the fact that the crypto asset expects the rally, I am completely sure of this. My words are confirmed by indicators on the ETH technical chart. ”
Thus, for Ethereum, the relative weakness of Bitcoin and the absence of strong bullish impulses is a great chance to break through a given trading range and set new highs.