Why Traders Think Ethereum’s Strength Could Help Bitcoin Rocket Past $10,000
Altcoins2020/05/31 20:00 by Cole Petersen
Ethereum has flashed signs of immense strength in recent times, as the cryptocurrency was able to rally to highs of $245 while Bitcoin and most other altcoins only saw tempered gains.
Although this uptrend has flashed some signs of stalling as it struggles to gain a foothold within the $240 region, analysts are noting that the cryptocurrency’s heavy resistance currently sits around $260.
As such, this is the level that bulls are likely to target if they are able to catalyze further upwards momentum in the near-term.
Analysts are now noting that Ethereum’s momentum – should it continue strong in the near-term – could be enough to pull Bitcoin past $10,000 in the days and weeks ahead.
One trader believes that if this possibility comes to fruition, Bitcoin’s break above $10,000 could provide Ethereum with even further fuel to rally higher.
Ethereum Posts Strong Price Action as Analysts Watch for a Move to $260
At the time of writing, Ethereum is trading down marginally at its current price of $233, marking a notable decline from daily highs of $245 that were set yesterday.
Although the crypto is flashing some signs of intense short-term strength, it is imperative to keep in mind that the rejection at these highs does point to some underlying weakness amongst buyers.
Any further downside could confirm these highs as a local top, but analysts are noting that there is still a solid chance that Ethereum pushes higher in the days ahead, regardless of where Bitcoin trends next.
One analyst spoke about this in a recent tweet, explaining that ETH doesn’t face any “real resistance” until $260.
“ETH at last real resistance till $260ish,” the analyst noted while pointing to the chart seen below.
Image Courtesy of Loomdart
Because $245 was only a slight resistance level, it is possible that the crypto will target this liquidity region before it dips any lower.
Could Ethereum Pull Bitcoin Higher?
One highly respected trader recently noted that Ethereum’s uptrend could pull Bitcoin higher in the near-term.
He also explains that Bitcoin breaking above $10,000 could provide Ethereum with even more strength, thus perpetuating its uptrend.
“ETH continues to hammer up, dragging BTC past a $10k breakout. That adds fuel to ETH until ETH has gone fully absurd.”
This could be a strong possibility, as Ethereum appears to have been leading this recent market-wide rally.
The cryptocurrency began pushing higher yesterday while Bitcoin was hovering around $9,300.
In the minutes following Ethereum’s jump, BTC followed suit and was able to climb back up to highs of $9,700.
That being said, Ethereum’s price action could hold heavy influence over that of the entire cryptocurrency market in the days ahead.
Featured image from Shutterstock.
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