Bullish trend for Ethereum – but a strong correction is also looming
Ethereum and the entire cryptocurrency market have had to deal with some immense turbulence in recent days and weeks.
The selling pressure the cryptocurrency has experienced in the upper $600 region has been quite intense and could see it continue to show weakness.
One trader is now commenting that most or all of the market’s further development will depend on Bitcoin.
He writes that he expects a sharp correction for ETH in the coming weeks, noting that there are several signs of overextension.
This would solidify a bearish trend of underperformance against BTC that has plagued the cryptocurrency recently.
Ethereum and the rest of the crypto market have seen a notable pullback in recent hours, brought about by Bitcoin’s weakness in the Crypto Code period following its plunge from highs of $24,200.
One trader now notes that Ethereum is showing some signs of standalone technical weakness that could lead it to move lower.
He specifically points to the cryptocurrency’s weekly Stoch RSI as an indicator that has shown previous tops and is now flashing bearish again.
Ethereum struggles to gain momentum as market moves lower
At the time of writing, Ethereum is trading at $597. This marks a notable decline from recent highs of nearly $670.
Where the cryptocurrency is headed in the medium term could largely depend on whether the bulls can permanently prevent a break below $600.
A popular crypto trader writes in a recent tweet: He believes Ethereum could be on the cusp of a notable correction.
He claims this will take place in the coming weeks due to a bearish sign indicated by his Stoch RSI.
„ETH – Is bullish but…. I expect a correction in the coming weeks and months (much depends on BTC and ETHBTC of course). The weekly Stoch RSI has nailed the tops on ETH.“
The coming days should shed light on whether Ethereum really continues to underperform Bitcoin, or whether it will soon be able to gain some ground.