Ethereum has been able to post some decent gains today, with its latest rally coming close on the heels of Bitcoin’s surge past $9,000. This momentum has allowed ETH to climb into the $230 region, although it has slightly underperformed BTC over the past 24-hours.
Analysts are now noting that Ethereum could be positioned for some significant upside in the days and weeks ahead, with its reaction to one key trendline potentially allowing it to begin a parabolic ascent.
One trader is noting that a break above this key trendline could lead the cryptocurrency to rally as high as $500, which would mark an over 100% surge from its current price levels.
Ethereum Approaches Key Trendline Resistance as Bullishness Begins Mounting
At the time of writing, Ethereum is trading up over 4% at its current price of $231.74, which marks a notable climb from its daily lows of $220 that were set yesterday.
ETH’s current price region has been acting as strong resistance throughout the past week, and an inability to break above this level in the near-term could be a bearish sign that leads the crypto to plummet lower.
In addition to facing some resistance around its current price level, it is also important to keep in mind that the crypto is currently approaching a descending resistance line that has been respected over multiple months, with one analyst noting that a break above this could lead ETH to $500.
The Cryptomist, a popular crypto analyst on Twitter, spoke about this level in a recent tweet to her 45k followers, concisely noting that the crypto is “one trendline break away” from seeing an intense rally.
“ETH: One trendline break away from $500+” she noted while pointing to the level marked on the below chart.
One trendline break away from $500 + pic.twitter.com/jvd6ELFM5Y
— The Cryptomist (@TheCryptomist) March 5, 2020
A potentially imminent break above this level isn’t the only bullish factor currently counting in Ethereum’s favor, as Bagsy, another popular cryptocurrency analyst, explained in a recent tweet that he believes it is a possibility that ETH is currently forming a bullish Wyckoff Accumulation pattern.
“ETH Wyckoff Accumulation pattern: This caught my eye; I’m no Wyckoff expert by any means, so I’m open to criticisms and remarks on this,” he said while pointing to the potential pattern marked on the chart seen below.
$ETH Wyckoff Accumulation pattern:
This caught my eye; I’m no Wyckoff expert by any means, so I’m open to criticisms and remarks on this. pic.twitter.com/DXHsjk4y4l
— Bagsy (@imBagsy) March 5, 2020
Although the validity of this pattern still remains clear, the confluence of this possibility with the potentially imminent trendline breakout that could be confirmed in the days ahead does seem to suggest that significantly further upside could be imminent for ETH.