Ethereum has been closely tracking Bitcoin’s price action as of late, which caused it to see an intense decline overnight when BTC plunged to lows of $17,700.
This move lower by the benchmark cryptocurrency created shockwaves that held heavy influence over the entire market, with ETH plunging as low as $528 while the rest of the market also saw some signs of intense weakness.
ETH has since seen what can only be described as a V-shaped recovery, as the cryptocurrency is looking technically stronger than Bitcoin at the present moment.
One trader is now expecting it to see further growth in the near-term.
Ethereum Posts “V-Shaped” Recovery from Recent Lows
At the time of writing, Ethereum is trading up over 3.4% at its current price of $573. This is around the price at which it has been trading throughout the past few days and weeks.
Where it trends in the mid-term may depend largely on whether or not Bitcoin can also continue rising off of its recent lows.
The next key level for ETH sits at $580, as this proved to be strong support over the past day or two. Once broken above, bulls will likely target $600.
Analyst Expects ETH to See Significantly Further Upside
One trader explained in a recent tweet that he is expecting Ethereum to see significantly further near-term upside.
He points to $550 as a key base of support that the cryptocurrency is likely to grow upon throughout the week ahead.
“ETH / USD: Got the wick into the bids as expected from 2 days ago, now we are looking to head back up to the range higher and for bulls to defend $550 with some strength for this week.”
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
The coming days should provide investors with serious insight into the long-term significance of the ongoing V-shaped recovery. If ETH turns lower, it may invalidate the newfound strength stemming from this.
Featured image from Unsplash.Charts from TradingView.
