Over the past few days, ETH has soared after dropping at $310-315 early last week. A recovery in both legacy markets and Bitcoin has greatly benefited the leading cryptocurrency. Moreover, since the lows they established last week, both have driven higher. An analyst shared sentiment about why ETH could correct towards $383.
As of the moment, ETH is trading for $380. This price is over 20% higher than the previously mentioned lows.
In the past 24 hours, the cryptocurrency is up 5 percent. It rose higher from a firm dive on Sunday morning. From a derivatives positioning standpoint, the coin stays in a good spot from with funding rates mostly neutral.
Regardless, an analyst is still believing that ETH could be in a position to correct back towards the low in the near future. Here is the reason why this analyst believes this will be the case.
Ethereum Could Be Poised to Correct Towards $383: Here’s Why
Not all the traders were convinced by ETH’s ongoing rally that the cryptocurrency is back in a bull trend.
In fact, on September 14th, one certain analyst and exchange co-founder shared a chart. It suggests that the coin is currently in a precarious technical situation even though ETH’s rally has marked a strong bounce.
Moreover, the chart indicates that ETH is currently dealing with two key resistances. Top Goon X, the analyst’s indicator, has also shown a low time frame reversal signal. This further suggests the downside is more likely than upside. He stated:
All Eyes on Legacy Markets
It’s significant to watch the legacy markets this week even though there are reasons to think Ethereum reverses as he laid out.
A macro analyst and economist, Alex Kruger, recently shared his perspective regarding the legacy markets. He said it could have an obscenely green rocket beginning of the week.
Over the past few months, the cryptocurrency has roughly been tracking stocks so this is really important for Bitcoin.