- Ethereum has seen a monumental rally throughout the past couple of days, with bulls taking full control over its price action
- This has come as BTC remains relatively stable in the upper-$30,000 region, with its stability giving altcoins the chance to rally
- ETH has yet to set fresh all-time highs despite its recent gains, but the crypto could be on the cusp of surging even higher as it begins establishing some support just below its current price
- One analyst is now pointing to a fractal showing Bitcoin’s reaction to its local highs several weeks ago
- If ETH follows in its footsteps, it may see a pullback before it can rally to all-time highs
Ethereum and many other altcoins have been caught in a wild uptrend throughout the past few days and weeks.
Buyers and sellers had both been struggling to gain firm control of ETH’s price action, with the recent breakout rally marking a firm end to this previous trend.
Despite being bullish on ETH in the mid-term, one analyst is now noting that there’s a possibility it will pull back before it can gain further momentum.
This possibility is rooted in an analysis of Bitcoin’s price action when it moved to break its local highs in late-2020.
Ethereum Rockets Higher as Crypto Market Stalls
At the time of writing, Ethereum is trading up just under 12% at its current price of $1,407. This marks a notable rebound from its recent lows of $900 set just a few weeks ago.
The crypto is now in the process of taking outs its previous local highs.
This doesn’t come as a surprise, but there is some resistance within the mid-$1,400 region from bears looking to defend against a break above these highs.
Once flipped to support, however, ETH could gain parabolic momentum similar to that seen by Bitcoin and multiply its previous all-time highs.
Trader: ETH Could Slide Lower Before Seeing Further Parabolic Momentum
“The high has now been taken. Let’s see the ETH response from here. BTC spent 24 hours around its high before eventually selling off so not expecting an immediate response. Bulls (and me) hoping for a power through instead of a grind here.”
Image Courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.
The coming several days should provide some insights into Ethereum’s outlook, which Bitcoin will undoubtedly play some role in shaping.
Featured image from Unsplash.
Charts from TradingView.