Ethereum could be on the cusp of seeing a strong push higher in the near-term despite its recent weakness.
Over the past 24-hours, the cryptocurrency has seen some intense weakness, with the lack of intense buying pressure at $400 opening the gates for intense downside after Bitcoin saw a sharp selloff.
ETH is now showing signs of forming a bottom in the lower-$380 region. This level has held strong on multiple occasions throughout the past few days and weeks, with $380 long being a pivotal level for the cryptocurrency.
So long as this level continues holding strong, it may form a double bottom and see further upside in the near-term.
One analyst is now pointing to a few key patterns that suggest ETH is bound to see some notable upside in the near-term.
He notes that its 4-hour cloud is printing the same pattern seen just before the surge from $360 to $420.
If history rhymes, these patterns indicate that Ethereum could be on the cusp of seeing a serious push higher despite its recent weakness.
Ethereum Forms Potential Bottom Around $380 as Buyers Step Up
Bitcoin saw a notable decline from its recent highs of $13,800 yesterday, with the resistance at this level proving to be too significant for bulls to break.
It dropped as low as $12,800 this morning before seeing a notable rebound that sent it surging back up to the lower-$13,000 region.
This created shockwaves that forced Ethereum lower as well, with the slight support it had at $400 shattering, causing it to plunge all the way down to $380.
Bulls have defended this level ardently thus far, and it could be forming a double bottom here.
Analyst: This Pattern Suggest ETH Could Soon See a Serious Push Higher
While sharing his thoughts on Ethereum’s current technical outlook, one analyst explained that he expects it to see some upside in the near-term due to a few bullish patterns he observed.
One such pattern is seen while looking towards its 4-hour cloud, but this pattern will only be validated if the crypto can break back above $391.
“Some bull hopium for ETH. 4h Cloud showing the same pattern before we pumped from 364 to 420. Price riding the 2D Cloud and it just printed a bullish TK-Cross,” he said while pointing to the below chart.
Image Courtesy of Smokey. Source: ETHUSD on TradingView.
Ethereum will likely track Bitcoin’s price action in the near-term, but there’s a high likelihood that ETH will continue underperforming the benchmark cryptocurrency.
Featured image from Unsplash. Charts from TradingView.