Over the previous several days,?Ethereum?has gone into consolidation together with Bitcoin and the majority of altcoins. It has been consolidating after its powerful move to the upside from the latest lows of $230 to highs of $415.
It was rejected from a high level and entered a bout of sideways trading as its bulls and bears both attain a stand-off. Therefore, ETH is currently under intensified bearish pressure as it is moving below the past support established close to $390.
A technical indicator is flashing an extremely bullish sign, with ETH?s 50-day moving average now breaking out of the 500-day consolidation phase. That is, ETH may be ready to record a remarkable upsurge in the days and weeks ahead.
At press time, the performance of Ethereum is towards the upside at its current price of $394. The current price is its new daily high, which is well above its recent lows of $367 established during a steep selloff recorded in the previous day.
Buyers were able to absorb this dip aggressively and it seems ETH may be in a good position to incur some remarkable upsurge in the near-term. In recent times, an analyst shared a chart showing a focus on $420 on the upside and that the performance of ETH is now within a bull flag.
If ETH breaks above the pennant?s upper boundary observed on its chart, it could catapult it to new yearly highs. The cryptocurrency has been striving to clear the near-term key barrier at $400. However, its failure to break above this barrier in the days ahead could signal a downtrend in the near-term.
Another analyst shared a chart showing a breakout which emerged towards the end of 2015, prior to ETH?s entry into the bull phase that eventually led to its parabolic move towards the end of 2017.
It seems the cryptocurrency is currently preparing the basis for another bull run, but an abrupt influx of bearish pressure could invalidate its near-term strength.