Ethereum has incurred a sharp upswing over the past day, significantly outperforming Bitcoin and most of its peers
The token’s ongoing upswing came about after buyers defended against a dip below its crucial support at $220 yesterday
This movement has allowed ETH to recapture its position within its multi-month trading range
Analysts are noting that the crypto is now shaping up to see further momentum in the days and weeks ahead
Bulls may not be in the clear just yet, as there are a couple of factors that may still point to underlying weakness
Ethereum and the aggregated cryptocurrency market faced a heavy influx of selling pressure yesterday.
This caused Bitcoin, Ethereum, and most other major digital assets to reel down to their crucial near-term support levels.
Bulls stepped up and posted an ardent defense of these levels, paving the way for the market to climb higher today.
The subsequent rally has allowed ETH to reclaim its position within its trading range between $230 and $250.
Analysts are now growing increasingly bullish on the cryptocurrency, although it has yet to break out of its trading range.
It also recently confirmed a dreaded “death cross” that could hamper is growth in the weeks ahead.
Ethereum Reclaims Long-Held Trading Range
At the time of writing, Ethereum is trading up 4% at its current price of $237. This marks a notable rally from its recent lows of $223 that were set yesterday.
Throughout the course of its subsequent rebound, ETH has been significantly outperforming Bitcoin and many of its other peers.
Some of this strength may stem from its ability to break the resistance it previously faced at $230.
Analysts now believe that it is building strong momentum that may carry it higher in the days and weeks ahead.
One such trader explained that it has now posted a series of support-resistance flips, which suggests it is “building the bases for a parabolic” movement.
“ETH is building its momentum. We can notice a series of S/R flip, imo this is very bullish as we are building the bases for a parabolic scheme,” he explained.
Image Courtesy of Wolf. Chart via TradingView.
Why ETH Still Remains in a Precious Position
Last week, Bitcoinist reported that Ethereum’s recent price action had caused it to form and confirm a dreaded “death cross” pattern on its 4-hour chart, the likes of which haven’t been seen since March.
Image Courtesy of Teddy. Chart via TradingView.
Although this pattern could be invalidated if ETH continues pushing higher, it still seems to indicate that the crypto is plagued by underlying weakness.
It also remains unclear as to how the ongoing DeFi boom will impact Ethereum.
Some investors speculate that the sector’s growth will draw funds away from ETH, only being cycled back into the crypto one the potential bubble bursts.
Until investors gain more insight into these factors, it may be too early to grow firmly bullish on Ethereum.
Featured image from Shutterstock.
Charts from TradingView.