Ethereum showed signs of immense strength today. The cryptocurrency surged to $ 550 as bulls attempt to erase recent losses caused by the recent market-wide sell-off.
This is because Bitcoin is also showing some signs of strength: the benchmark cryptocurrency is moving towards $ 18,000 after its recent decline that brought it to lows of $ 16,400.
Bitcoin is a firm leader in Ethereum and the rest of the market. The strong reaction both assets have seen after hitting their local lows seems like a bullish sign.
An analyst now notes that Ethereum is likely to see a significant uptrend in the short term, with its strength showing no signs of slowing as the bulls move to regain control of their trend.
He believes that $ 500 will prove to be a long-term local low for crypto and that it won’t start trending higher from here until the end of the year.
It is also possible that between these lows and its current price level it will enter an accumulation phase that will support the uptrend in early 2021.
Ethereum is showing signs of strength as buyers target $ 600
At the time of writing, Ethereum is trading just under 5% at its current price of $ 543. This is a notable rebound from recent lows of $ 490 at the end of the recent sell-off.
The passionate bulls defense of $ 500 suggests that this is a strong level of support that could further support price action in the coming weeks.
As long as it consolidates above $ 500 and confirms this as a strong level of support, there is a strong chance it will continue to move higher.
Analyst: ETH should continue to recover in the further course of 2020
A trader talking about Ethereum’s potential prospect explained that he expects there will be serious upward moves in the weeks leading up to the end of the year.
He added that he expects $ 500 to prove to be a long-term local low for the cryptocurrency that will trigger the next sustained uptrend.
ETH / USD: The weekly chart is currently looking excellent, while the USD 650 resistance has been rejected quite hard. Now showing strong support with $ 500 buyers aggressively defending … LTF expects to accumulate at $ 500 and hopefully this will be a local low for the rest of the year. ”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
The near-term price development of Ethereum will likely depend largely on Bitcoin, which bulls seem to favor at the moment. The benchmark cryptocurrency now rises to $ 18,000.
Featured image from Unsplash. Charts from TradingView.