- Ethereum’s price has been lagging far behind Bitcoin’s as of late, which has caused immense concern amongst traders and investors alike
- This stagnant price action has put an end to any prospects of an imminent “altseason,” and may continue causing altcoins to bleed out
- One trader believes that its failure to see any immense bullishness despite Bitcoin’s strength and yesterday’s ETH 2.0 rollout is a concerning trend
- He notes that this trend is putting Ethereum in a precarious position, and it will require some immense buying pressure to shift the tides back into bull’s favor
Bitcoin has been ripping higher throughout the past few days and weeks, with buyers and sellers both being unable to gain any control over its near-term trend. Meanwhile, Ethereum’s upswing has been slow, far underperforming that seen by BTC.
This price action has put any potential “altseason” on hold and has caused the rest of the market to bleed out while Bitcoin continues pushing higher.
One trader is now noting that there are some reasons to be concerned about ETH’s price action, including its tempered response to massive news regarding an imminent rollout of ETH 2.0.
Ethereum Shows Signs of Life as Bulls Move to Spark an Uptrend
At the time of writing, Ethereum is trading up just under 2% at its current price of $410. Buyers have been trying to spark some momentum today, but it has thus far failed.
Where the crypto trends in the mid-term may depend largely on whether or not it can break above its $420 resistance level that has held strong throughout the past couple of months.
Yesterday, bulls pushed it from $380 to over $400, with this sub-10% surge coming about due to news regarding the Ethereum 2.0 network upgrade’s imminent rollout.
The ETH 2.0 staking contract’s deployment was also a noteworthy development yesterday, although bulls didn’t seem too enthused.
Why One Analyst is Concerned with ETH’s Price Action
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that he is concerned that it has yet to post any notable rally on the back of the ETH 2.0 news.
He said that he is ready to short a breakdown if it cannot hold above $390.
“ETH’s inability to even run into a proper liquidity zone off the back of 2.0 news is concerning. Nothing more than a 1 day pump so far & even had a panic sell-off. My plan (unless obvious strength appears) is to short blue box or short a breakdown to $360 if $390 fails.”
Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.
Unless ETH can shift its current trend, break above $420 and begin rallying higher, there is a possibility that further downside is imminent.
Featured image from Unsplash. Charts from TradingView.
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