- Ethereum price still ignoring the positive sentiments from the network but chooses to follow Bitcoin price actions.
- BTC/USD is mainly in the hands of the bulls as it returns to the $240 pivotal level.
Ethereum bulls have managed to correct the negative gradient on Tuesday with a shallow recovery to the former pivotal level at $240. Investor interest has remained high despite Ether being a poor performer. For instance, the price has been stuck in consolidation despite parameters within the network saying it is time to rally.
The network has grown tremendously with Ethereum active addresses surging by over 350%. The addresses with over 0.1 ETH also hit a new all-time high in June, highlighting the growing interest among investors.
However, ETH/USD continues to trade side by side Bitcoin (BTC). In fact, the correlation between the two cryptoassets has hit the highest level in over two years. In other words, Ethereum could continue to ignore the positive sentiments within its network in favor of waiting for a BTC price action.
Ethereum technical analysis
As mentioned, Ethereum is back to the pivotal level at $240 after a slide to the short term support at $235 on Tuesday. The dominant, sideways trading is likely to take precedence in the coming sessions according to the motionless RSI and the MACD. Both are holding above their respective midlines on the weekly chart. This also shows that buying interest is present but bulls lack the catalyst and support for gains above $250.
The tight trading range is likely to pave the way for increased volatility which could push Ethereum above $280 (levels traded in February). Besides, the Ethereum price is holding above the 50 SMA in the weekly range as a show of strength from the bulls.