- Ethereum has seen some mixed price moves in the past few days, testing its all-time highs earlier this week before selling off quickly overnight
- The timing of the BTC sell-off that put pressure on ETH was unfortunate as ETH marked its highs as the local top
- This means that the $ 1,400 level may remain a strong resistance for the cryptocurrency in the short term
- While sharing his thoughts on this price action, an analyst stated that ETH is now following in Bitcoin’s footsteps
- He notes that after the first test, which was followed by an intense sell-off, BTC also faced a rejection at its peak
- The crypto then experienced a rebound that occurred just before some higher parabolic motion
Ethereum has been hit by pretty wild volatility for the past few days. The crypto soared to $ 1,450 yesterday before losing its momentum and facing a rejection that caused it to slide down.
BTC’s overnight weakness continued that move, creating a massive downtrend that brought it down to just $ 1,200 a few hours ago.
Buying pressure here has been quite high and has contributed to a strong rebound and has increased since then.
Ethereum rebounds from daily lows as Bitcoin drives market movements
At the time of writing, Ethereum is trading over 5% at its current price of $ 1,300. This is a notable drop from the recent highs of $ 1,450 set yesterday morning.
It’s also a rebound from the overnight lows of $ 1,200 that occurred in the middle of this recent sell-off, with the bulls currently trying to hit a near-term low.
As long as the bulls can continue to protect themselves from a drop in their local lows, $ 1,200 could mark a low point followed by another uptrend.
This BTC fractal could mean that ETH is sliding down before setting new highs
A trader recently pointed to a fractal of Bitcoin’s reactions to its all-time highs, comparing it to the reaction Ethereum has seen over the past few days.
He notes that BTC briefly broke its highs before a rejection and slight downtrend that ultimately resulted in a strong sell-off followed by a rally that started its parabolic journey higher.
“The similarities continue. The majority of you deserve this. Drawn into the discussion of the upward targets without knowing that ETH has not yet completed the contract in this area. Day of consolidation at the highs, just like BTC before the downtrend. It will come, just not yet. “
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
In the coming week, it should be checked whether Ethereum is still tracking this fractal.
Featured image from Unsplash. Charts from TradingView.