Ethereum has been incurring significant upwards momentum over the past several days and weeks, with its price surging from its recent lows of roughly $165 to highs of $215, which is the level at which it has incurred some selling pressure that has slowed its ascent.
Analysts are now noting that it is probable that ETH’s price rise begins cooling off in the coming days and weeks, but they are also noting that robust fundamentals could help extend its recent rally significantly further.
Ethereum Rally Stalls, But Fundamental Strength Likely to Propel it Further
At the time of writing, Ethereum is trading up roughly 3% at its current price of $213.92, which marks a massive surge from its 24-hour lows of roughly $207.
ETH has been incurring consistent upwards momentum over the past several days, which first began earlier this month when the crypto dipped below $170. This drop sparked a surge that has since allowed it to blow past its previous resistance levels and towards its current highs.
This upwards momentum may be showing some signs of stalling however, as Mayne, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that the resistance region that lies directly above ETH’s current price may lead it to pullback slightly, but he also notes that its current trend is still bullish.
“$ETH: Not a bad place for ETH to cool off here, dips are for buying IMO. 2 daily swing highs ran into a weekly bearish block. Once we clear this area and the upper black line the roofs off,” he explained.
Not a bad place for ETH to cool off here, dips are for buying IMO.
2 daily swing highs ran into a weekly bearish block. Once we clear this area and the upper black line the roofs off. pic.twitter.com/JxNe3ehDXv
— Mayne (@Tradermayne) September 18, 2019
Beyond simply having bullish technical formations at the moment, it also appears to have bullish fundamentals, and Jake Brukhman, founder of Coinfund, explained in a recent tweet that he believes that ETH’s price is currently being determined by technology-oriented investors who recognize its fundamental strength.
“This is total speculation, but I’m guessing these days $ETH price is being determined by a majority of technology-oriented holders. And these folks know what’s up with the technology,” he noted.
This is total speculation, but I’m guessing these days $ETH price is being determined by a majority of technology-oriented holders. And these folks know what’s up with the technology.
— (Miami) Jake Brukhman (@jbrukh) September 17, 2019
In recent times, Ethereum’s network has seen strong utilization, which is evident by looking towards its gas usage and network utilization – both of which have climbed significantly in recent times.
It remains unclear as to whether or not these factors are translating into bullish price action, but they are things that certainly should be considered by investors.