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…

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