- 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 $ 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. The bulls are currently trying to hit a short-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. Dragged into the discussion of the upside targets without knowing that the $ ETH didn’t finish the job in this area first. 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.
It should be checked in the coming week that Ethereum is still tracking this fractal.
Featured image from Unsplash. TradingView charts.