Ethereum reaches key demand zone after the extended period of weakness against BTC that we saw in the charts of our Ethereum price news.
The demand zone is proving to be a strong support level for the crypto asset but it still has a long way to go before it is able to gain more ground against BTC. One trader noted that it is only a matter of time before the price shoots up higher. He also pointed out the strength of the present support against BTC as well as the upcoming launch of the CME ETH futures as reasons why the upside could be imminent in the near-term.
The culmination of the technical support and fundamental strength in the listing could suggest that a higher move upwards is imminent. Ethereum was struggling to gain more momentum as of late with the weakness against BTC causing its pair to show signs of immense weakness. Where will it trend in the near-term could only depend on the BTC price action as the continued upward momentum will likely cause altcoins to hold the recent pattern of underperformance. Another trader explained that the upcoming CME futures listing coupled with the strong support shows that a serious push higher is imminent.
As Ethereum reaches the key demand zone, it is also trading down under 2% of its current price of $650. This is around the same price level that the crypto was trading over the past few days and weeks. The selling pressure actually formed because of the weakness that was seen against the BTC trading pair. Bitcoin’s strength caused most of the altcoins to lose ground against it and it could also hamper down the price action in the mid-term. One trader explained in a tweet that ETH is now nearing a key support level which will continue bolstering the price action against BTC and will spike more upsides. He noted that the upcoming CME futures listing will likely be a catalyst for growth:
“ETH – Weekly macro. Back on demand zone. I’m expecting a lower high to print very soon, before the beginning of a reversal. As money floods in the crypto, it’s only a matter of time before the second biggest asset gets institutional funding. Not to mention CME opens in Feb.”