Ethereum and the entire crypto market has continued trading sideways today despite the decline seen in the U.S. stock market, with Bitcoin showing some signs of breaking its correlation with the traditional markets.
Analysts are now noting that the strong support Ethereum has established within the lower-$100 region may just be enough to send it higher in the days and weeks ahead, with one prominent trader explaining that it could soon rally up towards $140.
Despite this, there is a bearish technical formation that ETH is currently caught within that bulls need to invalidate, as an inability to do so could open the gates for further losses.
Ethereum Stable Around $115 as Bitcoin Shows Signs of Breaking Correlation with Global Markets
At the time of writing, Ethereum is trading down marginally at its current price of $114, which is around where it has been trading at throughout the past several days.
This stability has come about as a result of that seen by Bitcoin, which has been hovering within the lower-$5,000 region over the past couple of days, following a brief visit to lows of $4,600 this past Monday.
Importantly, it does appear that Ethereum is currently caught within a bear pennant despite its ability to find some stability, which could be a dire sign that means further downside is imminent.
Jonny Moe, a popular analyst, spoke about this in a recent tweet, telling his followers that this could be a bearish sign for the crypto in the near-term.
“If you’re leaning bullish, ETH sure looks like a cleaner pennant,” he said.
— Jonny Moe (@JonnyMoeTrades) March 18, 2020
ETH Could Rally Higher if Support Holds
Michaël van de Poppe, another well-respected cryptocurrency analyst and trader, explained in a recent tweet that he believes the support Ethereum has established within the lower-$100 region could be enough to send it rallying higher in the days ahead.
“Similar here for Ethereum. Holding green and I expect a test of $135-140 to occur. However, losing green and I’ll be targeting $80/92/103 as next levels, probably around the lows,” he explained while pointing to the levels on the below chart.
Similar here for Ethereum.
Holding green and I expect a test of $135-140 to occur.
However, losing green and I’ll be targeting $80/92/103 as next levels, probably around the lows. pic.twitter.com/ntSYB8ZG3u
— Crypto Michaël (@CryptoMichNL) March 18, 2020
If bulls are able to defend the key aforementioned support and push Ethereum higher in the near-term, it will invalidate the bear pennant discussed by Moe, and open the gates for significantly further upside.
Featured image from Shutterstock.