Ethereum has been closely mirroring Bitcoin’s price action over the past several days and weeks, which led ETH to plummet in a capitulatory fashion yesterday evening before posting a strong bounce overnight that allowed it to reclaim its position within the $140 region.
One analyst is now noting that Ethereum’s multi-year bear trend may soon come to an end as it expresses multiple signs that may point to hidden underlying bullishness that will ultimately lead it to surge significantly higher in the mid-term.
Ethereum Posts Bullish Response to Recent Lows
At the time of writing, Ethereum is trading up roughly 1% at its current price of $147.75, which marks a massive climb from its daily lows of $132 that were set during a bout of capitulation last night.
This bullish response to these lows came about concurrently with Bitcoin’s surge from lows of $6,500 to its current price of $7,200, and it is highly probable that Ethereum will continue mirroring BTC’s price action in the near-term.
Today’s bounce may also confirm the notion that ETH was close to posting a long-term bottom against its Bitcoin trading pair.
Jonny Moe, a popular cryptocurrency analyst on Twitter, had mused this possibility prior to yesterday’s drop and subsequent recovery, and this latest price action may validate this idea.
“Possible bottoming attempt on $ETH on the $ETHBTC pair. Interested to see how this plays out,” he said while pointing to the chart seen below.
Possible bottoming attempt on $ETH on the $ETHBTC pair. Interested to see how this plays out. pic.twitter.com/mElLsLqrxE
— Jonny Moe (@JonnyMoeTrades) November 23, 2019
Could ETH Soon End its Multi-Year Downtrend?
Bitcoin Jack, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Ethereum could be close to putting a decisive end to its multi-year downtrend, meaning that significantly further gains could be right around the corner for the embattled crypto.
“Am I a delusional $ETH bull? I’m seeing a 800+ day correction coming to an end,” he said while pointing to the chart seen below.
Am I a delusional $ETH bull?
I'm seeing a 800+ day correction coming to an end pic.twitter.com/OAWL15aYGO
— Bitcoin 𝕵ack (@BTC_JackSparrow) November 24, 2019
Within this chart, Bitcoin Jack points to a few pieces of evidence that support this notion, including the fact that ETH recently posted a channel breakout, the inverted head and shoulder formation it is forming, its upcoming cyclical pivot, and large bullish divergences in its price action.
Bitcoin’s near-term price action will likely have a large sway on that of ETH, but investors should closely watch for any Ethereum bullishness in the near-term, as it could confirm Bitcoin Jack’s analysis.
Featured image from Shutterstock.
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