Ethereum has over the last few hours failed to capitalize on its recent breakout as it continues to struggle against key resistance. The world’s second-largest crypto by market cap is trading at $226 during press time.
ETH’s failure to break above a key psychological level at $230 shows that the market isn’t ready for a shift into a bull market and that the top altcoin needs an extended consolidation phase before it can make a continued upside move
In the short term, $190 seems like a conservative target to the downside, as this level has historically been a point of strong support and resistance over the past two years.
Ethereum Well-Positioned to See Further Upside
While Ethereum has struggled to recapture its long-held position within the $230 to $250 range, bulls are now trying to surmount it.
It does appear that $230 has become a key resistance level for the top-ranked altcoin, as it tested this price on numerous occasions in yesterday’s trading.
Overnight, the ETH price dropped as low as $227, but buyers were able to guard against any further downside and helped kick start a sharp rebound.
And now, popular analyst “TheCryptoCactus” is explaining that he remains bullish on Ethereum in the near-term, primarily due to its ability to hold above $210 for an extended period.
Similarly, Luke Martin, a prominent crypto analyst, argued that “in some ways” bullish Ethereum narratives are beginning to influence its price action.
He notes via twitter that ETH’s positive price action can primarily be seen while comparing it to other large cap altcoins such as XRP, LTC, and EOS.
Bullish Ethereum narratives are currently being driven by the imminent launch of ETH 2.0 and the exploding growth in the decentralized finance (DeFi) sector.
Will the Cardano (ADA) Rally Sustain?
ADA, the native token of Cardano, established a new 2020 top on July 1st. The eighth-largest cryptocurrency rose to $0.097 for the first time in over 12 months, marking its highest price since Jun. 2019.
The latest gains came on the day Cardano rolled out its much-awaited network upgrade, which will transform from a federated blockchain to a much more decentralized and vibrant “Shelley.”
ADA Founder David Hoskinson tweeted that they have launched the first Shelley node on Cardano’s mainnet, adding that a full hard fork would take place at the end of July 2020, followed by a full-staking rollout on the new blockchain by Aug.18th of the same year.
After the exciting news faded on Thursday, the Cardano price corrected lower by 2.5%, prompting many to worry if the July 1st rally would sustain itself.
Yesterday’s downward move may have been the beginning of a bearish correction that typically follows a wild upside move. Investors who went Long on ADA yesterday may now look to liquidate their positions for short-term gains.