The entire cryptocurrency market is currently caught in the throes of a multi-week consolidation phase led by Bitcoin. This has caused Ethereum to also see some rangebound trading, being unable to extend its recently incurred upwards momentum.
Because ETH has failed to garner any clear direction, analysts are now at odds as to whether or not this lackluster trading is bullish or bearish.
It is important to note that from a technical perspective there are some signs that suggest this is bull-favoring consolidation based on its BTC trading pair.
In order for this to be confirmed, however, buyers need to step up and push the crypto above a key resistance level that has been halting its growth. For the time being, it remains bearish as sellers force it lower.
One analyst is also noting that further upside against Ethereum’s BTC trading pair could be the catalyst that sparks the proverbial “altseason” – and there is one key level that he is closely watching.
Ethereum Plunges to $230 as Analysts Eye a Key Trading Range
At the time of writing, Ethereum is trading down over 5% at its current price of $231. This marks the lower boundary of a trading range that ETH has been caught within for the past few weeks.
Yesterday, buyers attempted to surmount ETH’s recent highs within the $250 region, but the attempt proved to be fleeting and was followed by a sharp retrace.
Bitcoin’s price action has been vital in understanding that of Ethereum and all other major altcoins, as the aggregated market has formed a close correlation to the benchmark cryptocurrency in recent times.
It now appears that this correlation could place some drag on the market in the near-term, as BTC’s stability is showing signs of faltering as it moves towards $9,300.
One analyst does believe that Ethereum’s long-held consolidation phase will result in an upwards breakout, however.
Luke Martin – a popular analyst and the host of the Coinist Podcast – spoke about this in a recent tweet.
He points to a wide trading range between roughly 0.0245 BTC and 0.0251 BTC, and explains that he still believes it will post an upwards break of this trading range and continue outperforming the aggregated market.
“Looks like I was a little too early in anticipating a breakout for $ETH, but my view has not changed. •Outperformance started in May •Price consolidating in the white box since June started. Labeled the chart to explain how I’m viewing this level,” he said.
Could ETH Spark The Next Altseason?
Another interesting possibility mused by an analyst is that Ethereum could spark the next “altseason” if it is able to heavily outperform BTC in the near-term.
The analyst explained that it needs to first surmount 0.026 in order for this possibility to come to fruition.
“Would love to see ETH make the jump above .026 so we can see continuation on alts,” he noted while pointing to the below chart.
How Ethereum responds to Bitcoin’s current weakness should offer significant insight into whether it will soon breakout of its aforementioned trading range and push higher.
Featured image from Shutterstock.
