Ethereum and the aggregated cryptocurrency market has seen a slight selloff overnight that was catalyzed by Bitcoin’s decline to the lower $6,000 region. This plunge has not impacted ETH in the same way it has other altcoins, as the crypto is currently significantly outperforming the market.
One analyst is now noting that there are a few key technical factors that he is closely watching for insight into where Ethereum will trend next, with the crypto offering some conflicting signals.
Importantly, ETH is on the cusp of confirming a highly bullish technical formation that could lead it to see a massive rally, should bulls gain enough strength to complete the pattern.
Ethereum Outperforms Bitcoin and Other Altcoins Amidst Market-Wide Downturn
At the time of writing, Ethereum is trading down just under 1% at its current price of $132, which marks only a slight decline from daily highs of $134 that were set yesterday.
ETH’s ongoing bout of sideways trading marks an extension of that which it has been facing throughout the past couple of days, with it holding up surprisingly well against Bitcoin.
Bitcoin has incurred some slight downwards pressure today that caused it to reel down over 3% to its current price of $6,250, leading many major altcoins to decline in tandem.
Although ETH’s outperformance of Bitcoin is overtly bullish, it is important to note that Josh Olszewicz – a popular cryptocurrency analyst on Twitter – explained that it is currently sending mixed signals.
“4h ETH tri w/desc vol. Daily bbands leaning bull. 50/50 overall. 200 if up, hopefully not 0 if down,” he noted while pointing to the technical formations seen chart seen below.
4h $ETH tri w/desc vol
daily bbands leaning bull
50/50 overall
200 if up, hopefully not 0 if down lol pic.twitter.com/ANmuMmidNl
— Josh Olszewicz (@CarpeNoctom) April 1, 2020
This Potential Breakout Pattern Could Send ETH Rallying Significantly Higher
Olszewicz also went on to explain that any further upwards momentum could allow ETH to post a cloud breakout, with confirmation of this opening the gates for it to see a sharp rally up towards $170.
“Cloud breakout will be obvious, if it occurs. Should move quickly to 170,” he noted while referencing the cloud seen on the below chart.
cloud breakout will be obvious, if it occurs
should move quickly to 170 pic.twitter.com/8P9M3Nghqg
— Josh Olszewicz (@CarpeNoctom) April 1, 2020
In order for this bullish technical formation to be confirmed, it is imperative that bulls are able to continue decoupling Ethereum from Bitcoin and further extend its independent upwards momentum.
Featured image from Shutterstock.