Ethereum is currently on the verge of returning to its long-established trading range of $ 230-250.
A recent influx of selling pressure from the cryptocurrency forced the price to fall below the lower limit of this range for an extended period of time, with ETH even testing its crucial support several times at $ 220.
This price movement was an underperformance of Bitcoin – as the benchmark cryptocurrency only fell below its established trading range for an incredibly short period of time.
An analyst is now finding that he believes that Ethereum is about to enter a new bull phase, the macro price structure of which shows the first signs of strength.
He supports this thought by pointing out the fact that crypto has been able to withstand over $ 200 for over a month in the past few months.
This “new bull phase” could also be fueled by an increasing representation of the underlying strength of the cryptocurrency.
The technical outlook of Ethereum is strong despite the sectoral trade
At the time of writing, Ethereum is trading just under 2% at its current price of $ 229. The crypto has been trading in this price region for several days and weeks and is trying to achieve a clear dynamic in both directions.
It appears that bulls are trying to push ETH back into its long-standing trading range since it has remained below this level for a longer period.
If buyers overcome the resistance they appear to be facing at $ 230, they could be well positioned to rise to their range highs at $ 250.
An analyst recently explained Why he believes crypto is entering a new bull phase explains that its ability to hold over $ 200 over a period of several months is a good sign of its high timeframe.
“ETH HTF Update: Previously, every time PA broke over $ 200, we saw a very fast and very fast drop below $ 200 within the first month. This time it looks different… The current candle structure looks great and I think we could really enter a new bull phase, ”he said.
Image courtesy of Cactus. Chart via TradingView.
Bullish ETH Narrative Blossoms with the growth of the DeFi sector
The growth of the DeFi sector based on Ethereum has triggered a new wave of bullish Ethereum narratives. Many speculate that the money and users that DeFi attracts will ultimately increase the price of the cryptocurrency.
Ryan Adams, the founder of Mythos Capital, talked about it in a new tweetand explains that the story "DeFi-Boom = ETH-Mond" is convincing.
"I'm a fundamentals investor, I don't do a lot of narrative investing. But if I were, I would put money into this … DeFi boom = ETH moon. Nothing is certain. The link between the DeFi boom with ETH's price hike, however, is one of the most obvious storytelling games I've seen in Crypto, ”he explained.
Featured image from Shutterstock. Charts from TradingView.