Very much like Bitcoin, Ethereum has been stuck within the agonies of an intense bout of sideways trading. As a result, the cryptocurrency has largely hovered around the lower boundary of its multi-month range. It was unable to gain any clear and decisive trend in both directions. An analyst noted that Eth’s lackluster price action may soon come to a rapid end.
Many major digital assets have been able to commence strong uptrends; however, Ethereum has not been so fortunate.
Moreover, various analysts are now saying that the cryptocurrency may be in a position vulnerable to some notable downside in the coming days and weeks.
Ethereum has experienced one of its most narrow bouts of sideways trading throughout history.
The cryptocurrency has been trading mostly between $230 and $250 since May. It only broke out of this range on a very few and short events.
Ethereum has been shaping a close correlation to Bitcoin throughout this period. Bitcoin’s bout of trading at the lower boundary of its long-held trading range is the reason why ETH trade above its range-lows.
ETH’s Boring Price Action May Soon Come to An End
Analysts are now observing that this uneventful price action may soon have a quick end in the near-term.
When talking about which direction the next movement may send ETH to, an analyst is placing his bets on $200.
Currently, Ethereum is trading down marginally with a price of $234. Furthermore, Bitcoin is also trading just above the lower boundary of its trading range which is $9,100.
The two digital assets have molded a very tight connection with one another. It is likely that where Bitcoin goes will provide Ethereum with a more explicit trend as well.
One notable analyst is saying that this draggy price action may soon come to a rapid end.
A valued analyst shared a chart that shows that massive moments virtually follow periods of consolidation this tight all the time. He is saying so while pointing to Ethereum’s historical volatility.
The Reason Why This Next Move Could Favor Bears
One analyst is saying that Ethereum’s imminent volatility could lead it to see a downside.
Within a chart an analyst shared, he set a near-term downside target at $200. Moreover, he highlights the dense resistance just above its current price level which has been hindering it from climbing higher.
If this decline will happen, it will likely be the aftermath of Bitcoin dropping lower at the same time.