- Ethereum has seen a monumental rally in recent days, with bulls taking full control of the price action
- This is because BTC remains relatively stable in the upper USD 30,000 region, with its stability giving altcoins a chance to rally
- ETH has yet to hit new all-time highs despite its recent gains, but the cryptocurrency may be on the cusp of rising even higher as it begins to receive some support just below its current price
- An analyst now points to a fractal showing Bitcoin’s response to its local highs a few weeks ago
- If ETH follows in its footsteps, it could see a drop before it can soar to record highs
Ethereum and many other altcoins have been in a wild upward trend in recent days and weeks.
Buyers and sellers both struggled to gain firm control over it ETH’s price promotion, with the recent breakout rally putting an end to this earlier trend.
Despite being optimistic ETH in the medium term, one analyst now notes that it may retreat before moving forward.
This possibility is rooted in an analysis of Bitcoin’s price action as it hit its local highs in late 2020.
Ethereum rockets higher than crypto market stalls
At the moment of writing, Ethereum is trading just under 12% at the current price of $ 1,407. This marks a remarkable resurgence from the recent USD 900 lows set a few weeks ago.
The crypto is now in the process of disabling its previous local highlights.
This comes as no surprise, but there is some resistance in the mid-USD 1,400, from bears looking to defend themselves against a break above these highs.
However, once turned to support, ETH could gain parabolic momentum similar to Bitcoin’s and multiply its previous record highs one day.
Trader: ETH can slide lower before seeing further parabolic momentum
“The high has now been taken. Let’s take a look at the ETH response from here. BTC spent 24 hours around its peak before finally selling, so didn’t expect an immediate response. Bulls (and I) are hoping for a power through here instead of a grind. “
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
The next few days should provide some insight into Ethereum’s Outlook, which Bitcoin will undoubtedly play a role in shaping.
Featured image from Unsplash. Charts from TradingView.