Analysts have observed a correlation between the price action of Ethereum and Bitcoin within the previous few days. Ethereum has been in a consolidation phase as its performance is beneath $320.
It declined slightly overnight, thereby making it signal weakness while its macro outlook is still amazingly bright.
Based on history, analysts are saying that ETH is approaching a remarkable level that could pave the way for a move to the upside towards $400 in the near-term. This is such that the focus of one trader is a yearly close at above $500.
The reaction of Bitcoin as it moves around the $11k zone will determine whether ETH will move higher in the near-term. ETH is likely to record a remarkable selloff after any steep dip from here.
At press time, the performance of Ethereum was marginally towards the upside at $332, representing a remarkable rise from around $317 level where it has been trading over the previous several days.
Analysts have said that it is highly possible for ETH to surge higher if Bitcoin is able to clear its key barrier in the mid-$11k zone. Specifically, a renowned analyst explained in recent times that if ETH closes above $320, it could trigger a rise past $400.
In the medium term to long term, analysts think that the cryptocurrency may be able to attain a yearly close at above $500.
According to a renowned analyst known as Cactus, who predicted ETH’s rally above $300 while it was still in the lower-$200 area, the cryptocurrency will move to $500 prior to the end of the year.
He backed up his bullish outlook with a chart revealing the break above the critical high time frame barrier it encountered in the past at price levels between $280 and $300.
However, the influence of Bitcoin on the price action of Ethereum cannot be ruled out. Hence, this bullish outlook for ETH may be validated if BTC likewise keeps pushing higher as the year goes on.