Fractal Suggests Ethereum May Face Further Chop Before Seeing Parabolic Rally
“The similarities continue. The majority of you deserve this. Drawn into discussing the upside targets without appreciation that $ETH hasn’t completed the job in this range first. Day of consolidation at the highs, the same as BTC before heading lower. It’ll come, just not yet.”
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.
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.
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 the past couple of days.
He notes that BTC briefly broke its highs before facing a rejection and slight downtrend, which ultimately led to a sharp selloff followed by a rebound that kicked off its parabolic journey higher.
“The similarities continue. The majority of you deserve this. Drawn into discussing the upside targets without appreciation that $ETH hasn’t completed the job in this range first. Day of consolidation at the highs, the same as BTC before heading lower. It’ll come, just not yet.”
The coming week should validate whether or not Ethereum will continue tracking this fractal.
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