- Ethereum has been trading as a higher beta asset for Bitcoin lately and was closely tracking benchmark crypto but saw more drastic moves
- Last night’s bitcoin sell-off proved a bit bad for ETH as the cryptocurrency fell to a low of $ 1,040
- That drop represents a 30% retracement from ETH’s recent highs of $ 1,450, which were set a few days ago
- However, in the time since hitting those lows, Ethereum has seen a strong V-shaped rebound that could mark a macro bottom
- Speaking about its performance in a recent tweet, a trader noted that its strength versus Bitcoin also suggests an uptrend is imminent
Ethereum has seen some tumultuous price movements in the past few days and weeks, with selling pressures around its all-time highs of $ 1,450 triggering an intense downtrend, compounded by Bitcoin’s weakness.
That sell-off turned into surrender last night, and crypto has risen since it saw a sharp pullback to lows of $ 1,040
An analyst is now bullish on ETH, noting that the strength of the cryptocurrency versus Bitcoin and its USD pair suggests that there could be a massive uptrend soon.
Ethereum forms the classic “V-shaped” recovery
At the time of writing, Ethereum is trading over 20% from its overnight lows at its current price of $ 1,230.
The massive rebound has also allowed it to outperform Bitcoin, which is also well above its recent lows.
The strong rebound in ETH could indicate that investors are dying to buy their dips as they have not yet passed their all-time highs and seen no price discovery.
Analyst: The rebound in ETH indicates that a massive upward trend is imminent
An analyst said in a recent tweet that Ethereum’s rebound against the Bitcoin pair and the USD pair suggests that a “real” rally may be coming soon.
This could mean another test of its all-time highs is imminent, but this time around, crypto can potentially destroy the resistance present here.
“The ETH versus BTC looks very good for a continuation and a decent rally. Expect a big inefficient move on ETH if BTC shows some strength / dead-cat bounce today. “
Image courtesy Livercoin. Source: ETHUSD / ETHBTC on TradingView.
The coming days should shed some light on the outlook for Ethereum, as an expansion of this current momentum could lead to further upward movements in the coming days and weeks.
Featured image from Unsplash. TradingView charts.