Ethereum has continued to follow the seemingly uncertain path of Bitcoin this week as it consolidates above a key psychological level of support before the typically low volume weekend.
In Ethereum’s case it is hovering above the $200 level exactly one month after it broke out and surged towards the $219 level of resistance.
The period of consolidation demonstrates a bullish bias at present, although a break down from $200 would almost certainly lead to an initial correction to $177 with $151 being the next level of support below that.
With volume having dropped off significantly this month while price has remained fairly stable it indicates that a major move is coming within the next fortnight.
From a macro perspective the key point Ethereum needs to trade above is $296 as this would mark its first higher low since June, 2019.
It would also tie into the bullish narrative connected to the recent Bitcoin halving, which many expect to be a catalyst for an upcoming cryptocurrency bull market as it was in 2017.
However, on lower time frames Ethereum needs to set its sights on breaking out above $219 on the fifth attempt following a number of rejections in the past month.
Another rejection could be devastating in the short term as it would demonstrate exhaustion from buyers which would undoubtedly lead towards more downside price action moving into next month.
If Bitcoin can manage to break above $10,000 over the coming weeks Ethereum will likely follow with $248 remaining a prominent target to the upside.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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