It looks like Ethereum (CRYPTO:ETH) will continue to consolidate in the near term.
Securities tend to make rapid and large moves higher after they break resistance levels. At these levels, there are large groups of sellers. If the level “breaks,” it means these sellers have finished.
With this large amount of supply off the market, buyers will need to pay higher prices. This is what causes rallies.
See Also: Here’s Why JPMorgan Believes Ethereum Will Continue Growing Faster Than Bitcoin
It happened when ETH broke the resistance at $2,500. Within two days of doing so, ETH was up by about 10%.
Because it made such a big move in such a short period of time, the buyers have decided to step back. They want to see if ETH will move lower so they can buy it at a better price. This is why the price hasn’t moved much Thursday or Friday.
Holders of Ethereum need to watch this. It if consolidates for too long, it could get targeted by short-sellers. They could knock it right back down to $2,500.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights
This news is originally posted here