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Ethereum has seen some immense bullishness today against Bitcoin, with the cryptocurrency firmly outperforming its peers as its buyers vie to shatter the resistance that has been firmly established around $198.
This latest upside movement comes close on the heels of ETH’s recent rejection at this level, and its ability to rally while BTC consolidates seems to uncover some underlying strength amongst its bulls.
One popular trader is now noting that he anticipates ETH to go parabolic against BTC in the days and weeks ahead.
Ethereum Lays the Groundwork to See a Massive Rally Against Bitcoin
At the time of writing, Ethereum is trading up over 1.25% against USD and up just under 1% against BTC.
This has led the crypto to climb up to its key USD resistance region that exists within the upper-$190 region – an area in which the crypto has faced multiple harsh rejections at in recent times.
While looking towards its Bitcoin trading pair, it also faces some resistance around its current price of 0.0255 BTC, although it appears to be significantly stronger against the benchmark cryptocurrency than it is against the US Dollar.
This strength may be primarily rooted in its recent ability to break above a key trendline that was previously suppressing its price action.
A popular pseudonymous crypto analyst on Twitter pointed to this trendline in a recent tweet, explaining that he believes ETH is “gearing up for round 2” while referencing a chart showing a parabolic upside target at roughly 0.034 BTC.
“ETH/BTC gearing up for round 2. A continuation will make the rest of the market follow,” he explained.
The notion that Ethereum is leading the market is rooted in its ability to front-run Bitcoin’s price movements throughout the earlier part of the year – a trend that may continue strong in the months to come.
How High Could This Rally Lead ETH against USD?
The gains Ethereum sees against its USD trading pair may be far more tempered, however, as analysts are noting that it may only reach as far as $217 before stalling.
Another popular trader mused this possibility in a blog post, explaining that he is closely watching for ETH to target $217 in the days ahead, before seeing a selloff that potentially leads it to as low as $130.
He notes that this downside target would mark an ideal entry point for spot positions.
“I am now looking at $217 (the March open price and prior support) as the upside limit before we see a retest of $167 and perhaps even those levels of confluence at ~$130. If we do come into $130, I will be buying spot ETH to hold for a long time,” he explained.
Featured image from Unsplash.
