- Ethereum has seen a monumental rally in the past few days, with the bulls taking full control of their price movements
- This is because BTC remains relatively stable in the upper $ 30,000 region, and because of its stability, it gives altcoins the opportunity to rebound
- ETH has yet to hit new all-time highs despite its recent gains, but crypto may be on the verge of rising any further as it establishes some support just below its current price
- An analyst is now pointing to a fractal that shows Bitcoin’s reaction to its local highs a few weeks ago
- If ETH follows in their footsteps, it can pull back before it can hit all-time highs
Ethereum and many other altcoins have been caught in a wild upward trend for the past few days and weeks.
Buyers and sellers both struggled to get a firm grip on ETH price action, and the recent breakout rally marked a firm end to this earlier trend.
While an analyst is optimistic about ETH over the medium term, he is now realizing that there is a possibility that he may pull out before he can gain any further momentum.
This possibility is based on an analysis of the price history of Bitcoin when it tried to break its local highs in late 2020.
Ethereum Rockets Higher Than Crypto Market Stalls
At the time of writing, Ethereum is trading just under 12% from its current price of $ 1,407. This is a notable rebound from the recent lows of $ 900 set a few weeks ago.
The crypto is in the process of eliminating its previous local highs.
This comes as no surprise, but in the $ 1,400 region there is some resistance from bears looking to defend themselves against a break above these highs.
However, once flipped to assist, ETH could achieve parabolic dynamics similar to Bitcoin, multiplying its previous all-time highs.
Trader: ETH could slide down before seeing more parabolic impulses
One trader wondered if Ethereum could follow in Bitcoin’s footsteps and slide down after taking out its highs before seeing any further momentum.
“The high is now taken. Let’s look at ETH’s answer here. BTC spent 24 hours around its high before finally selling out without expecting an immediate reaction. Cops (and I) are hoping for a force through here instead of a grind. “
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
The coming days should provide some glimpse into the prospects for Ethereum, which Bitcoin will undoubtedly help shape.
Featured image from Unsplash. Charts from TradingView.