Fractal Suggests Ethereum May Face Further Chop Before Seeing Parabolic Rally
Ethereum has posted some mixed price action throughout the past few days, testing its all-time highs earlier this week before facing a swift selloff overnight
The timing of the BTC selloff that placed pressure on ETH was unfortunate, as it has led ETH to mark its highs as a local top
This means that the mid-$1,400 level may remain intense resistance for the cryptocurrency in the short-term
While sharing his thoughts on this price action, one analyst explained that ETH is now following in Bitcoin’s footsteps
He notes that BTC also faced a rejection at its highs following the first test, which was followed by an intense selloff
The crypto then posted a rebound that came about right before it saw a parabolic move higher
Ethereum has been caught in the throes of pretty wild volatility throughout the past few days. The crypto rallied as high as $1,450 yesterday before losing its momentum and facing a rejection that caused it to slide lower.
BTC’s overnight weakness perpetuated this movement, causing it to see some massive downside that let it as low as $1,200 just hours ago.
The buying pressure here was quite intense and helped spark a strong rebound, and it has been rallying higher ever since.
Ethereum Rebounds from Daily Lows as Bitcoin Dictates Market Movements
At the time of writing, Ethereum is trading down over 5% at its current price of $1,300. This marks a notable slide from its recent highs of $1,450 that were set yesterday morning.
It also marks a rebound from overnight lows of $1,200 that came about in the midst of this latest selloff, with bulls currently trying to form a short-term bottom.
As long as bulls can continue guarding against a decline to its local lows, $1,200 might mark a bottom that is followed by further upside.
This BTC Fractal Could Mean ETH Will Slide Lower Before Setting New Highs
One trader recently pointed to a fractal of Bitcoin’s reactions to its all-time highs, comparing it to the reaction that Ethereum has seen throughout the past couple of days.
He notes that BTC briefly broke its highs before facing a rejection and slight downtrend, which ultimately led to a sharp selloff followed by a rebound that kicked off its parabolic journey higher.
“The similarities continue. The majority of you deserve this. Drawn into discussing the upside targets without appreciation that $ETH hasn’t completed the job in this range first. Day of consolidation at the highs, the same as BTC before heading lower. It’ll come, just not yet.”
