Ethereum has been significantly underperforming Bitcoin in recent times. While the benchmark cryptocurrency is currently hovering around its multi-month highs, ETH is still trading significantly below where it was just over a week ago.
This weakness against BTC is showing some tempered signs of degrading, however, as buyers were able to firmly defend the crypto’s key support that exists around $198.
Analysts are now noting that Ethereum could be well-positioned to rally back up to its recent highs of over $230 as its technical strength grows.
Ethereum Inches Higher, But Continues Underperforming Bitcoin
At the time of writing, Ethereum is trading up just under 1% at its current price of $213, marking a slight decline from daily highs of $216.
ETH has been able to post a decent recovery from its multi-day lows of roughly $200 that were set during a sharp selloff on Wednesday.
The crypto’s lackluster price action has come on the heels of a long bout of ETH underperforming Bitcoin.
This trend first started in late-February when the aggregated market began losing momentum.
During the course of the subsequent decline, Ethereum plummeted from highs of $290 to lows within the sub-$100 region.
Bitcoin has climbed back up towards its year-to-date highs in the time since the mid-March meltdown, but ETH still has a significant way to go.
An interesting trend that could have some influence of the second-largest cryptocurrency’s future price trend is the potential launch of ETH futures on the CME – a possibility that one popular trader thinks will soon come to fruition.
“ETH futures on CME will have huge impact and this time up makes sense from cyclic perspective. Also makes sense to have ability to hedge ETH 2.0 stakes. So my guess is that it won’t be long before we see these futures launch,” he mused.
Analysts Agree: Ethereum Likely to Revisit Intra-Rally Highs
As for where the crypto may trend next, multiple analysts are now anticipating that it will soon climb up towards its intra-rally highs within the $230 region.
One popular pseudonymous trader spoke about his target in a recent tweet, explaining that he is watching for a visit to its Renko bands at roughly $234.
“Renko representation of the ETH breakout. I’m looking to try and tap into the outer band ($234ish) – this would line up with the 4h moving into the band for the second time,” he noted.
Image Courtesy of Cold Blooded Shiller
Another trader mused a similar possibility while noting that yesterday’s daily close offered a clear invalidation of its previous weakness.
He too believes Ethereum will target $234 next.
“Notable Daily close. Helps with a more clear invalidation. I wouldn’t want to see a bleed back down towards the breakout. When $216 breaks, I’m looking for a quick move towards $234. Reaction there will decide my next move.”
Image Courtesy of UB
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