- Ethereum’s price has been significantly underperforming that of Bitcoin as of late
- While the benchmark cryptocurrency is now trading at fresh yearly highs, Ethereum is still down nearly 30% from its 2020 highs
- This underperformance is quite surprising to investors, as this latest Bitcoin rally is one of the few that has occurred in full isolation
- Altcoins have not been able to match its momentum throughout the past few days, but it remains unclear as to how long this trend will persist
- Today, news regarding PayPal adding support for Bitcoin helped move its price higher, but they are also adding support for Ethereum
- Once the market takes notice, it could help send ETH flying higher
Bitcoin is currently trading at a new yearly high, with bulls being in full control of its uptrend as sellers struggle to gain any traction. Ethereum, however, is still consolidating at $380.
The lack of selling pressure above $12,000 is a promising sign for Bitcoin, but it is imperative that Ethereum rallies and matches its momentum, or else serious downside could be imminent.
Currently, ETH is trading above its key support at $380, which has acted as heavy resistance on multiple occasions as of late.
One analyst believes that a continued bout of trading above this level could lead it up towards $410 in the coming few days.
Ethereum Lags Behind Bitcoin Despite Bullish PayPal News
At the time of writing, Ethereum is trading up just under 4% at its current price of $382.
This is around where the crypto was trading just a few days ago, while Bitcoin hovered within the lower-$10,000 region.
Its inability to gain any momentum is interesting, because the PayPal news that helped drive Bitcoin higher today was equally relevant to Ethereum, as the FinTech giant is also adding support for buying, selling, and storing ETH.
Analyst: ETH Must Defend $380 to Break Above $400
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that $380 is the crucial level to defend.
He notes that a continued bout of trading above this level could open the gates for a test of its next resistance at $388, followed by a move up towards $410.
“ETH: My next gameplan looking a little something like this if we can flip resistance,” he said while pointing to the levels marked on the below chart.
Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.
The coming few days should provide serious insight into Ethereum’s outlook, as its continued reaction to $380 will be critical for understanding where it trends in the weeks ahead.
Featured image from Unsplash. Charts from TradingView.