Ethereum incurred a notable overnight surge that has allowed it to rally over 8%, gaining a firm position within the mid-$150 region as it begins showing signs of building strong momentum against both its USD and BTC trading pairs.
Analysts are now noting that the cryptocurrency is nearing its first key resistance level, with its reaction to this level potentially being the sole factor that determines whether or not it is able to incur further momentum.
It is important to note that this recent movement did mark a breakout of a highly bullish technical formation that ETH had been forming throughout the past few days.
Ethereum Rallies Past $150 In Sharp Overnight Movement
At the time of writing, Ethereum is trading up over 8% at its of $156, which marks a notable climb from daily lows of $141 that were set just hours prior to the upswing.
This rally came about in tandem with that seen by Bitcoin, with bulls propelling the benchmark cryptocurrency past the strong resistance that it previously faced at $7,000.
Ethereum, however, has been able to outperform BTC so far, as it is currently trading up nearly 4% against its Bitcoin trading pair.
One factor that could further bolster ETH in the near-term is the fact that this upwards breakout seemed to mark the confirmation of a bullish ascending triangle that the crypto had been forming.
NewsBTC reported about this formation yesterday, citing prominent cryptocurrency analyst Josh Olszewicz, with the upper boundary of this pattern existing at roughly $145.
He had noted that a confirmed break of the upper boundary of the ascending triangle would open the gates for an upside movement towards $200, which could mean that its rally is just getting started.
ETH Approaches Key Resistance, But Explosive Upside May Be Inbound
Olsewicz isn’t the only analyst setting near-term Ethereum price targets around $200, as Michaël van de Poppe – another analyst who trades under the pseudonym Crypto Michaël – noted that ETH could move towards $195 if it breaks the resistance at $159.
“Ethereum: Crucial levels coming up here. The BTC pair: Breaking and flipping 0.022 area would justify continuation towards 0.025. The USDT pair: Breaking and flipping $159 would justify movements towards $195.”
Crucial levels coming up here.
The pair: Breaking and flipping 0.022 area would justify continuation towards 0.025.
The pair: Breaking and flipping $159 would justify movements towards $195.
— Michaël van de Poppe (@CryptoMichNL)
Unless Bitcoin faces another swift rejection within the lower-$7,000 region, it does appear that Ethereum and the aggregated crypto market is positioned to see further near-term upside.
Featured image from Shutterstock.