- Ethereum saw an incredibly intense decrease yesterday that sent its rate plunging to fresh multi-week lows
- This selloff came about in tandem with the flash crash seen by the entire altcoin market, which may have come about due to XRP’s 50%+ one-day decrease
- Other significant altcoins– like Chainlink– posted massive losses that led to deep downwards wicks on their candle light charts, likely due to on-chain brief liquidations
- ETH is now in the process of recuperating from these lows, and it is presently attempting to break back above $600
- Whether it can climb up greater might figure out if it can post an incredibly bullish inverse head and shoulders pattern on its weekly chart
- One expert notes that a verification of this pattern could enable it to see some very bullish rate action in 2021
Ethereum’s cost action has actually been rather lackluster as of late, with the cryptocurrency being not able to garner any strength against Bitcoin as its buying pressure stays tempered.
This has actually caused the whole altcoin market to stay relatively flat, which is a trend that will likely continue up until ETH can rally versus Bitcoin.
Its underperformance might not last for excessive longer, and the other day’s selloff may have been the last shakeout prior to it sees more upside.
One expert discussed this, pointing to a potentially bullish pattern forming on its weekly chart.
Ethereum Tries to Reclaim $600 as Rebound Gains Steam
At the time of writing, Ethereum is trading up simply under 2% at its present cost of $593, which marks a noteworthy climb from its recent lows of $550 that were set yesterday.
The buying pressure here was rather extreme, and whether or not it can climb up greater will depend on its response to $600.
A rejection here might spell problem for its ongoing upswing, whereas a rally past it might permit it to see considerably more upside.
Trader Claims ETH is Forming a Bullish Pattern Against BTC
Despite its weakness against Bitcoin, one trader is keeping in mind that Ethereum might be forming a bullish inverse head and shoulders pattern against Bitcoin. This could provide it momentum heading into 2021.
“If ETH bounces here it starts to setup a hell of an inverse head and shoulders on the weekly to go into 2021.”
Image Courtesy of Jonny Moe. Source: ETHBTC on TradingView.
The coming few days will be crucial for comprehending whether this pattern will lead to Ethereum seeing considerable upside in early-2021.
Featured image from Unsplash. Charts from TradingView.