- Ethereum and the entire crypto market are currently consolidating following yesterday’s breakout rally
- This rally came about following Bitcoin move to its $19,400 resistance, which is a level that it has yet to surmount decisively
- Until BTC can break above this level, the rest of the crypto market will likely struggle to gain any immense momentum
- One analytics firm is now noting that Ethereum’s mid-term trend may be boosted by growing underlying strength
- They note that multiple on-chain metrics are currently bolstering the cryptocurrency and are all working greatly in bulls’ favor
- Unless Bitcoin plunges and derails this strength, there’s a growing possibility that a break above $600 is imminent in the days ahead
Bitcoin and the rest of the crypto market have been caught within a bout of consolidation throughout the past day, which has impacted Ethereum greatly.
Yesterday, ETH was gearing up for what appeared to be a test of its $600 resistance, but the selling pressure here proved to be too intense, and Bitcoin’s inability to break above $19,400 also created some headwinds.
One analytics firm is pointing to the on-chain data that all seem to suggest that a bull-favoring move higher is imminent for Ethereum in the near-term.
Ethereum Inches Lower as Bitcoin Rally Falters
Bitcoin has been in firm control of the aggregated crypto market throughout the past few days and weeks, causing ETH and other altcoins to track its every movement closely.
On Sunday, the benchmark cryptocurrency rallied as high as $19,400 before it lost its momentum and began consolidating. This led Ethereum to see a similar movement, being unable to break above $600.
Until $600 is flipped into support, ETH will likely be unable to gain any independent momentum.
On-Chain Data is Working in ETH Bulls’ Favor
According to one prominent analytics firm, multiple on-chain indicators are currently pointing to underlying strength for Ethereum.
They note that the number of new addresses just hit a 35-month high, with these new addresses also interacting more heavily with the network regularly – a promising sign.
“The amount of new #Ethereum addresses hit a single-day, 35-month high Saturday. Our network growth metric picked up ETH reaching 177.5k addresses created. Notably more addresses interacting on an asset’s network is a very promising indicator for bulls.”
Image Courtesy of Santiment.
The coming few days should shine a light on whether or not this underlying strength will be enough to propel Ethereum’s price past $600.
Featured image from Unsplash. Pricing Data Source: ETHUSD on TradingView.