Ethereum’s technical outlook strengthens as the market recovery begins

• Ethereum has closely followed Bitcoin’s price action over the past few days and weeks, which has led it to see some immense turmoil in recent times.
• Just two days ago, the benchmark cryptocurrency faced rejection at its all-time high that caused it to stagger from $ 19,500 to $ 16,400
• This selloff has been the most intense seen since this bullish trend first started a few weeks ago
• The next trend will almost entirely depend on whether or not the bulls can extend the ongoing rebound
• An analyst believes Ethereum is in a position to climb higher in the short term, as it now looks technically strong

Ethereum and the entire cryptocurrency market have seen some of the most intense turmoil seen in the weeks over the past couple of days.

Bitcoin’s rejection of its all-time highs, coupled with fear of a new wave of regulations, has caused the entire market to falter, with ETH plunging from its recent highs of $ 620 to lows of $ 490.

Where medium-term market trends will largely depend on whether or not the bulls can extend the ongoing rebound that is taking place right now.

A trader expects further upside, noting that the cryptocurrency looks increasingly strong from a technical point of view.

Ethereum rises alongside Bitcoin

At the time of writing, Ethereum is trading more than 4% higher at its current price of $ 539, which marks a massive rebound from the multi-day lows of $ 490 set at the bottom of the recent selloff.

The strength seen in the aftermath of the recent sell-off at the market level is a positive sign, as it indicates that major digital assets have all been brought into oversold territory.

ETH may encounter some resistance around $ 540, but a break above this level could lead it to see a significant upside.

Analyst says ETH is poised to see further benefits

A trader explained that Ethereum now looks technically strong and could be well positioned to see further upside in the days and weeks to come.

He notes that he would like to see another sweep of the range lows to make a sustained upward push in the days and weeks to come.

“Back to blue. I bought ETH commercials for $ 500 and am now long on lev. I’d still like to see another sweep of the lows, just hoping it doesn’t get cut. The signals have been strong enough from this chart which guarantees me to be long when we are blue. “

Image courtesy of Cold Blooded Shiller. Source: ETHUSD on TradingView.

This coming weekend should shed some light on the current state of the market and provide valuable insights into where Bitcoin, Ethereum and other major crypto assets will go in the medium term.

Featured image from Unsplash.
Charts from TradingView.