- Ethereum saw a massive breakout rally today that came about alongside Bitcoin
- BTC’s surge from $32,000 to highs of $38,500 came about as the result of Elon Musk changing his Twitter bio to “#Bitcoin” and calling the change “inevitable” in hindsight
- This dragged all the major altcoins higher, but the focus remains on Bitcoin for the time being
- This has caused ETH to see some slight underperformance and may result in the altcoins market stagnating while Bitcoin rallies
- One analyst is now looking towards potentially imminent price discovery for Ethereum
- He notes that assuming it tracks Bitcoin’s price action, ETH could see a rally to $3,000 in the coming few weeks
Ethereum has seen some bullish price action throughout the past several hours, with bulls sending its price rocketing up to highs of $1,440 in tandem with Bitcoin’s surge to $38,500.
The market’s immense strength that came about due to this movement is showing few signs of wavering, despite a few pullbacks.
One analyst is now noting that ETH could be on the cusp of seeing an explosive movement that sends it to fresh all-time highs of around $3,000 before it faces any massive resistance.
Ethereum Soars Alongside Bitcoin as Market Rebounds
At the time of writing, Ethereum is trading up 8% at its current price of $1,390, which is just below its recent highs of $1,475 set at the peak of last week’s move higher.
Bulls are trying to take full control of the cryptocurrency now, despite a few failed attempts by bears to fade the pump.
Pullbacks following a massive move higher are to be expected, but there’s a strong possibility that it gets quickly erased by bulls eagerly awaiting an entry following the overnight developments.
Analyst: ETH Could See an Explosive Move to $3,000 Next
One analyst explained in a recent tweet that Ethereum could be on the cusp of seeing an explosive rally.
He notes that once it breaks above its all-time highs, the cryptocurrency will likely see price discovery that allows it to rally towards $3,000 if it copies the same pattern Bitcoin saw.
“ETH: Looking at potential scenarios for price discovery… If we keep tracking BTC’s move and put in a leg of +111%, post the real deal ATH breakout, then we interestingly will be right at $3,000. Big psychological level, same price that gave BTC a big pullback in 2017.”
Image Courtesy of HornHairs. Source: ETHUSD on TradingView.
The coming few days should provide insights into where BTC and Ethereum will trend in the mid-term and whether this latest surge is sustainable.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on January 29, 2021 at 09:30PM
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