- Ethereum has been closely tracking Bitcoin’s price action as of late, which has primarily led it to enter a prolonged consolidation phase
- The cryptocurrency’s price action has favored altcoins in recent times, as the stability seen by both ETH and BTC has allowed smaller digital assets to post massive gains
- Where ETH trends in the near-term will likely depend on Bitcoin, but the resurgence in the DeFi trend could give rise to an Ethereum price spike that takes place regardless of where Bitcoin trends
- If this happens, the crypto must shatter the resistance it faces at $500
Ethereum and the aggregated cryptocurrency market have been caught in the throes of an intense bout of consolidation throughout the past few days and weeks.
This sideways trading has provided a strong base for higher risk digital assets to grow upon, with many “blue-chip” tokens within the DeFi sector posting large gains.
One trader explained in a recent tweet that he is watching for ETH to see some massive upside in the near-term.
He notes that it is forming a technical pattern that is strikingly similar to that printed by the cryptocurrency before its parabolic rally in late-2017.
If history rhymes, then ETH could be on the cusp of seeing some immense momentum in the weeks ahead.
Ethereum Consolidates Alongside Bitcoin as Momentum Stalls
At the time of writing, Ethereum is trading down just over 3% at its current price of $460.
Although the crypto has declined from its daily highs of over $470, it is still trading above its key support level.
Where it trends next will depend largely on Bitcoin, but it could gain some independent momentum if the DeFi sector continues rebounding.
ETH Forms Similar Pattern to That Seen in 2017
One trend that could boost Ethereum in the near-term is that it has formed a price pattern strikingly similar to that seen before its parabolic rally in 2017.
While speaking about this, one trader stated that he expects some consolidation now before ETH can rocket higher.
“ETH – yeah it looks really good. Last time it needed two spikes up and a little more consolidation before blastoff.”
Image Courtesy of Chonis. Source: ETHUSD on TradingView.
The coming few days should provide insight into where the entire crypto market will trend next.
Featured image from Unsplash. Charts from TradingView.