- Ethereum has posted a number of mixed price promotions in recent days, testing its all-time high earlier this week, before seeing a rapid sell-off overnight.
- The timing of the BTC selloff straining ETH was unfortunate as it has led ETH to mark its highs as a local top
- This means that the mid to USD 1,400 could remain an intense resistance for the cryptocurrency in the near term
- While sharing his views on this price action, an analyst explained that ETH is now following in Bitcoin’s footsteps
- He notes that BTC also faced a rejection at its peak after the first test, which was followed by an intense sell-off
- The crypto then posted a rebound that came about just before seeing a parabolic move higher
Ethereum has gotten into the grip of some pretty wild volatility in recent days. The crypto soared to USD 1,450 yesterday before losing momentum and facing a rejection that pushed it down.
BTCs weakness from one day to the next continued this move, seeing a massive downside that saw it as low as $ 1,200 just a few hours ago.
Buying pressure here was quite intense and helped trigger a strong rebound, and it’s been moving higher ever since.
Ethereum is recovering from daily lows as Bitcoin dictates market movements
At the moment of writing, Ethereum is trading more than 5% at the current price of $ 1,300. This marks a notable drop from the recent highs of $ 1,450 reached yesterday morning.
It also marks a recovery from overnight lows of USD 1,200 that came in the midst of this latest sell-off, with bulls currently trying to form a short-term bottom.
As long as bulls can continue to watch for a decline towards the local lows, $ 1,200 could mark a bottom followed by further gains.
This BTC fractal could mean that ETH will slide lower before setting new highs
A trader recently pointed to a fractal of Bitcoin’s responses at its all-time high, compared to the response Ethereum has seen in recent days.
He notes that BTC briefly broke its highs before facing a rejection and a slight downtrend, eventually leading to a sharp sell-off followed by a rebound that started its parabolic journey higher.
“The similarities continue. Most of you deserve this. Involved to discuss the upward targets without realizing that $ ETH did not get the job done in this range first. Day of consolidation at its peak, same as BTC before going lower. It will come, but not yet. “
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
The next week should validate whether Ethereum will continue to track this fractal.
Featured image from Unsplash. Charts from TradingView.