This Fractal Suggests Ethereum May Rally Past $500 Before Plunging Lower

Ethereum

Ethereum is moving in close tandem with Bitcoin today, which has made it prone to seeing heightened weakness as its buyers struggle to hold it above $380.

This has become a critical level for the crypto, and analysts are noting that how it responds to this level throughout the day should provide significant insights into its near-term outlook.

One fractal pattern that analysts are looking towards seems to indicate that Ethereum will continue higher for here, even pushing past $500 in the coming days.

This uptrend may be fleeting, as it also shows that a short visit above $500 may be followed by a movement down towards the $200 region.

Ethereum Attempts to Defend Crucial $380 Support

At the time of writing, Ethereum is trading down just over 1% at its current price of $379. Throughout the past several hours, it has been oscillating between trading in the lower-$380 region and the upper-$370 region.

Whether or not this crucial level is firmly surmounted in the near-term should provide insight into ETH’s near-term outlook.

One analyst does believe that its ability to continue defending and recapturing this level is a positive sign, suggesting that upside may be imminent.

“ETH / USD: Seen price wick this level before sub $380… not failing for it a third time, we continue up from here gentlemen,” he said while pointing to the chart seen below.

Image Courtesy of Cactus. Chart via TradingView.

Fractal Suggests ETH Upside is Imminent, But Downside May Follow 

While speaking about a striking Ethereum fractal he has been watching, one analyst explained that if it continues holding firm in the near-term, the pattern suggests a move to the $500 region may be imminent.

“ETH – before and after. Expect all the market going up (after the last leg down) if the fractal keeps playing out,” he said while pointing to the chart seen below.

Image Courtesy of il Capo of Crypto. Chart via TradingView.

If this pattern continues playing out, Ethereum could be in for some serious turbulence.

Featured image from Unsplash.
Charts from TradingView.
Exit mobile version