Ethereum price analysis : on the sidelines
Ethereum price analysis shows that bulls need to rally the cryptocurrency towards the $158.00 level to help form a reversal pattern. ETH/USD needs to trade above the $170.00 level to turn technical bullish on all fronts.
Ethereum has been making a steady recovery from its December 2019 trading low. However, the ETH/USD pair has failed to match the performance of its nearest rival, Bitcoin.
Ethereum technical analysis shows that the cryptocurrency needs to rally above the $170.00 level to secure its medium-term prospects.
ETH/USD medium-term price trend
Ethereum technical analysis shows that the cryptocurrency is still technically bearish, and has been trapped below its key 200-day moving average since November of last year.
Bulls need to rally the ETH/USD pair above the $170.00 level in order to change this dynamic.
The recent recovery across the cryptocurrency market has helped improve the technical outlook of the ETH/USD pair, although the pace of recent gains in the second-largest crypto has dramatically lagged behind Bitcoin.
Looking at the daily time frame, traders are currently battling around the ETH/USD pair’s 50-day moving average. Continued stabilisation above this area supports further gains towards the $170.00 level.
It seems that in order for Ethereum to progress higher, a bullish catalyst is needed. Positive fundamental news or more gains in the BTC/USD pair towards $9,000 could help the ETH/USD recovery to be higher.
ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that the cryptocurrency is bullish while price trades above the $137.00 level.
The cryptocurrency has recently started to gain traction above its 200-period moving average on the four-hour time frame, following months of gradual losses.
ETH/USD bulls need to rally the cryptocurrency towards the $158.00 level to form a valid bullish reversal pattern.
Failure to rally the cryptocurrency towards the $158.00 level will encourage the notion that the latest move higher is simply a minor correction within a larger downtrend.
If a bullish reversal pattern is formed, the size of the bullish pattern suggests a rally towards the $190.00 area could be on the horizon.
It will certainly be interesting to see if Ethereum can continue to gather strength from current levels, considering its market size and place in the crypto rankings.
ETH/USD technical summary
Ethereum technical analysis suggests that buying the cryptocurrency from current levels may still be a risky option.
A rally towards the $158.00 resistance level would confirm a bullish reversal pattern has formed and also the possibility that a medium-term price floor is in place.