Ethereum has been closely tracking Bitcoin’s price action as of late, but it has failed to successfully follow through and confirm multiple bullish technical formations that it had previously been forming.
This has led multiple analysts to express caution when it comes to ETH’s near-term price action, as it may continue to drop against both BTC and USD as its bulls falter.
Ethereum Climbs Slightly Against USD, But Drops Against BTC
At the time of writing, Ethereum is trading up just over 1% at its current price of $179.9 but is trading down over 1% against its BTC trading pair.
ETH’s lackluster performance against Bitcoin is the result of BTC’s recent surge, which sent it from lows of $10,000 to highs of $10,400, from which it has settled at its current price of $10,300.
Last night, UB – a popular cryptocurrency analyst on Twitter – spoke about Ethereum while looking towards its BTC trading pair, explaining that it faced a rejection after briefly moving above a long-established trading range, which may mean that it will target the bottom of this range next.
“$ETH / BTC – Short. SFP after breaking the Range High. Large increase of sell volume to break back inside the Trading Range. Looks like a fakeout above the Range High. I’ll reevaluate my short position depending on the reaction at the EQ,” he noted.
The Crypto Dog, another popular analyst, offered a similarly bearish sentiment on the crypto, pointing to an ETH/USD chart that shows a strong rejection in the upper $180 region, which may mean that it will soon visit its range lows of roughly $169.
“No reclaim, no volume. There isn’t anything encouraging about $ETH here. Safest move here is to wait for a genuine break out or to buy the dip lower,” he noted while referencing the chart seen below.
No reclaim, no volume.
There isn't anything encouraging about $ETH here. Safest move here is to wait for a genuine break out or to buy the dip lower. pic.twitter.com/lpx3OR1D7U
Because Ethereum has posted a strong rejection at its range highs on both its USD and BTC trading pairs, it is highly probable that it once again visits its range lows, which could mean that it will incur a potential 6% drop against its USD pair in the coming hours and days.