Despite incurring some noteworthy selling pressure earlier this week, Ethereum has posted a decent recovery in the time since and is now tepidly advancing back towards the $270 region.
One analyst is now noting that Ethereum is close to forming a bullish technical formation that has only been formed a small amount of times in the cryptocurrency’s history, which may mean that significantly further gains are imminent.
Ethereum Climbs After Dropping Earlier This Week
At the time of writing, Ethereum is trading up nearly 2% at its current price of $265, up significantly from its recent lows of $250 which were set earlier this week when Bitcoin’s inability to break above the $9,000 sent the entire crypto markets reeling back.
Although ETH has posted a strong recovery from its recent lows, it is still down quite a bit from its weekly highs of nearly $290. In the near-term, it is highly probable that Ethereum’s price action will be largely dictated by how Bitcoin trades.
Importantly, however, ETH is struggling to break back into a previously established rising wedge, which may signal that further bearish price action is in bound.
The Cryptomist, a popular cryptocurrency trader on Twitter, discussed this in a recent tweet, explaining that she expects ETH to drop as low as $230 in the near-future.
“$ETH: Similarly to BTC, we currently are being rejected from previous rising wedge as support is now resistance. I am still short term bearish on this for now, and think we could still see $230 range,” she noted.
Similarly to Btc, we currently are being rejected from previous rising wedge as support is now resistance
I am still short term bearish on this for now, and think we could still see $230 range
— The Cryptomist (@TheCryptomist) June 1, 2019
ETH Forming Incredibly Bullish Technical Formation
Although Ethereum may incur some bearish price action in the near future, it is currently forming a bullish technical formation that may allow it to surge significantly higher in the near-future.
Josh Olszewicz, another popular crypto analyst on Twitter, discussed this technical formation in a recent tweet, explaining that it has only occurred a small handful of times and may lead to significantly further gains.
“1D $ETH 100EMA/100SMA crosses have only occurred 4 times in $ETH’s history, with a 5th cross happening in the next few days,” he explained.
— Josh Olszewicz (@CarpeNoctom) May 31, 2019
Although there is currently a debate as to whether or not Ethereum will climb higher or plunge lower, it is important to note that the direction the aggregated markets head next will likely be primarily based off of how Bitcoin trades in the near-future.
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