Ethereum could be on the verge of going parabolic as analysts look to the upside

• Ethereum has been closely following Bitcoin’s price action in recent times, which has mainly led to it entering a phase of prolonged consolidation.
• Cryptocurrency price action has favored altcoins in recent times, as the stability seen by both ETH and BTC has allowed smaller digital assets to record huge gains
• Where ETH trends in the short term will likely depend on Bitcoin, but the resurgence of the DeFi trend could give rise to an Ethereum price spike that occurs regardless of where Bitcoin goes
• If that happens, the crypto must shatter the resistance it faces at $ 500

Ethereum and the aggregate cryptocurrency market have been involved in an intense period of consolidation over the past few days and weeks.

This side trading has provided a solid foundation for the growth of higher-risk digital assets, with many “blue chip” tokens within the DeFi sector making big gains.

A trader explained in a recent tweet that he is waiting for ETH to see some huge gains in the near term.

Note that it is forming a technical pattern that is strikingly similar to the one printed by the cryptocurrency before its parabolic rally in late 2017.

If history rhymes, then ETH could be on the verge of seeing huge momentum in the coming weeks.

Ethereum consolidates alongside Bitcoin as momentum stops

At the time of writing, Ethereum is trading down just over 3% at its current price of $ 460.

Although the cryptocurrency has declined from its daily highs of over $ 470, it is still trading above its key support level.

The next trend will largely depend on Bitcoin, but could gain independent momentum if the DeFi sector continues to rebound.

The ETH forms a similar pattern to that seen in 2017

One trend that could increase Ethereum in the short term is that it has formed a strikingly similar price pattern to that seen before its parabolic rally in 2017.

Speaking of this, a trader declared expects consolidation now before ETH can skyrocket.

“ETH – yes, it looks really good. Last time it took two peaks and a little more consolidation before takeoff.”

Image Courtesy of Chonis. Source: ETHUSD on TradingView.

The next few days should provide insight into where the entire cryptocurrency market will go.

Featured image from Unsplash.
Charts from TradingView.