Ethereum has surged over the past few days after bottoming at $310-315 early last week. The leading cryptocurrency has been benefiting from a recovery in both legacy markets and Bitcoin, which both have pushed higher since the lows they established last week.
As of the time of this article’s writing, ETH trades for $380 — which is a price over 20% higher than the aforementioned lows.
The cryptocurrency is up 5% in the past 24 hours, having pushed higher from a strong drop on Sunday morning. The coin remains in a decent spot from a derivatives positioning standpoint, with funding rates mostly neutral.
Still, an analyst thinks that Ethereum could be primed to correct back towards the low in the near future. Here’s why this analyst thinks this will be the case.
Related Reading: Here’s Why This Crypto CEO Thinks BTC Soon Hits $15,000
Ethereum Could Be Poised to Correct Towards $383: Here’s Why
Ethereum’s ongoing rally hasn’t convinced all traders that the cryptocurrency is back in a bull trend.
One analyst and exchange co-founder shared the chart below on September 14th. It shows that while ETH’s rally has marked a strong bounce, the coin is currently in a precarious technical situation.
The chart shows that ETH is currently rubbing up against two key resistances: a horizontal support at ~$385 and an internal trend line that supported the price recovery last week. The analyst’s indicator, Top