This Silver Fractal Suggests Ethereum Could Soon See a Parabolic Breakout
The markets have favored the underdogs throughout the past week, with silver and Ethereum both outperforming their larger counterparts.
Although there aren’t any noticeable connections between the two assets, their price action in recent times has been strikingly similar, and it does appear that ETH is forming a fractal pattern with the precious metal.
If the fractal continues playing out, it would suggest that Ethereum is in for a massive rally higher in the days and weeks ahead.
This rally could cause the crypto to incur some parabolic momentum, being bolstered by an abundance of bullish narratives that are currently surrounding it.
Silver and Ethereum Outperform Their Larger Counterparts
This week, both Ethereum and silver were able to post notable uptrends that allowed them to put some distance between their current prices and their recent lows.
Ethereum, which was trading at $230 earlier this week, is now pushing up against its high time frame resistance around $290 as its bulls attempt to surmount the heavy selling pressure existing at this price region.
Silver has seen some similar momentum. Over the past week, the precious metal has been able to rally by over 15%, marking a 30% year-to-date surge.
Analysts believe that its price is being driven higher by increased demand for precious metals due to imminent fiat currency inflation.
While speaking to CNBC about where silver might trend next, Bill Baruch of Blue Line Capital explained that he believes $30 could be in the cards – assuming buyers can shatter the resistance at $26.
This would mark an over 30% climb from where it is currently trading at.
Analysts are also growing bullish on Ethereum, which has rallied from weekly lows of $230 to highs of $290 that were set earlier today.
Although ETH and silver don’t share any fundamental similarities as Bitcoin and gold do, the two assets have been seeing strikingly similar price action as of late.
They are also both being driven higher by the emergence of multiple bull-favoring narratives.
This Fractal Suggests ETH’s Rally Is Just Getting Started
One analyst recently pointed to the existence of a compelling fractal between Ethereum and silver to justify the possibility that ETH soon sees a parabolic move higher.
While speaking about this pattern, he explained that he does think ETH will continue following the precious metal.
“Imagine not thinking eth/usd is going to follow silver. Worse yet, imagine shorting eth before a multiyear breakout.”
Image courtesy of SmartContracter. Chart via TradingView.
If Ethereum does follow in silver’s footsteps, it could mean that the second half of 2020 will prove to be extremely positive for ETH.
Featured image from Unsplash.
Charts via TradingView.