After a short bout of bearishness that led Ethereum to retrace nearly all of the gains that were incurred as the result of its recent rally, the cryptocurrency has now been able to post a notable technical breakout.
This breakout appears to be catalyzing significant momentum for the cryptocurrency and has even allowed it to lead this market-wide movement.
Analysts are now noting that they anticipate ETH to see some bullish continuation in the near-term – being further bolstered by strength seen against its BTC trading pair.
Ethereum Posts Breakout Rally as Crypto Market Begins Running
At the time of writing, Ethereum is trading up nearly 6% at its current price of $182, marking a notable climb from daily lows of $171 that were set yesterday.
This movement came about in tandem with the rally posted by Bitcoin this morning that allowed the benchmark crypto to once again recapture its position within the $7,000 region.
It is important to note that ETH still has quite a way to climb before it reclaims its weekly highs of over $190 that were set last week. If the crypto should revisit this level, whether or not it breaks out and continues pushing higher will likely depend on Bitcoin.
One factor to consider in the near-term is that this latest movement appeared to mark a highly bullish technical breakout of a loose flag pattern that it was previously caught within.
A popular crypto analyst on Twitter pointed to this pattern in a recent tweet, concisely noting that ETH decided to run while showing the breakout seen on its daily chart.
Image Courtesy of Ethereum
While looking at the chart he references above, it appears that this ongoing breakout is quite similar to that seen earlier this month when ETH ran from 0.022 BTC to 0.026 BTC – a 20% surge.
ETH Shows Continues Strength Against Bitcoin
This momentum could easily extend significantly further due to the strength ETH is expressing against its Bitcoin trading pair.
One popular pseudonymous trader on Twitter spoke about this strength in a tweet, explaining that he is anticipating Ethereum to see further bullish continuation from here.
“ETH BTC update: Beautiful tag of 0.0246 and bounce; got some bids filled. I’m expecting bullish continuation from here,” he said while pointing to the below chart.
Image Courtesy of Bagsy
Unless Bitcoin faces another sharp rejection at its near-term resistance at roughly $7,200, Ethereum will likely continue outperforming the benchmark crypto and will potentially set fresh local highs.
Featured image from Unsplash.