Ethereum has been one of the best performing major altcoins over the past several weeks, with the cryptocurrency surging past its previous resistance at $200 as its slow upwards grind begins turning into a parabolic rally.
This momentum has allowed ETH to significantly outperform both Bitcoin and the aggregated crypto markets, leading many analysts to watch for further near-term upside.
In the near-term, the critical level that should be closely watched sits at $225, as a flip above this level could lead to a massive amount of upwards momentum that significantly extends its ongoing uptrend.
Ethereum Rallies to $220 as Analysts Watch for Its Reaction to These Key Levels
In the near-term, ETH does appear to facing strong resistance around $220, as the crypto has struggled to decisively break above this level throughout the morning, with each attempt to climb higher being met with a significant amount of selling pressure.
Ethereum’s massive climb throughout 2020 has allowed it to form a firmly bullish market structure, which has led HornHairs – a prominent crypto analyst – to note that any major dip “is for buying.”
“This is the simplest way I can put it: Price is always in a game of tug-of-war between bulls and bears. The current weekly candles are showing bears getting overpowered and dragged through the mud on both $ETH and $BTC. Any major dips are for buying,” he explained.
As for where Ethereum will likely trend in the near-term, it appears to be critical that bulls propel ETH above $225, as a decisive break above this level could spark some significant momentum.
HornHairs also spoke about the important of this level in a recent tweet, explaining that $225 is where he would expect to see ETH pullback.
“ETH HTF: Price butchered the high time frame level at $195, in the event of a retrace that level is now a BUY. At the moment, we are against another huge level at $225. This would be a reasonable spot to expect a pullback after one or two more LTF pops to the upside,” he explained.
How Ethereum responds to this key resistance as the daily close fast approaches should offer investor and traders deep insights into where the crypto will head next.