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- Ethereum has been trading as a higher beta asset to Bitcoin as of late, closely tracking the benchmark crypto but seeing more drastic movements
- Last night’s Bitcoin selloff proved to be somewhat dire for ETH, with it sending the cryptocurrency down to lows of $1,040
- This decline marks a 30% retrace from ETH’s recent highs of $1,450 that were set just a few days back
- In the time since these lows were set, however, Ethereum has posted a strong v-shaped recovery that could mark a macro bottom
- One trader spoke about its performance in a recent tweet, noting that its strength against Bitcoin also indicates that upside is imminent
Ethereum has seen some turbulent price action throughout the past few days and weeks, with the selling pressure around its all-time highs of $1,450 sparking an intense downtrend that was magnified by Bitcoin’s weakness.
This selloff turned into capitulation yesterday evening, and the crypto has been climbing higher ever since it saw a sharp pullback to lows of $1,040
One analyst is now optimistic on ETH, noting that the cryptocurrency’s strength against both Bitcoin and its USD pair suggests it could soon see some massive upside.
Ethereum Forms Classic “V-Shaped” Recovery
At the time of writing, Ethereum is trading up over 20% from its overnight lows at its current price of $1,230.
The massive recovery it has seen has also allowed it to outperform Bitcoin, which is also up significantly from its recent lows.
ETH’s strong rebound may suggest that investors are keener on buying its dips because it has yet to break its all-time highs and see price discovery.
Analyst: ETH’s Rebound Suggests Massive Upside is Imminent
One analyst explained in a recent tweet that Ethereum’s rebound against its Bitcoin pair and USD pair suggests that it could soon see a “proper” rally.
This could mean that another test of its all-time highs is imminent, but this time the crypto may be able to shatter the resistance that exists here.
“ETH against BTC looks very good for continuation and a proper rally. Expecting large inefficient move on ETH if BTC shows some strength / dead-cat bounce today.”
Image Courtesy of Livercoin. Source: ETHUSD/ETHBTC on TradingView.
The coming few days should shine some light on Ethereum’s outlook, as an extension of this current momentum could lead to further upside in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
