Ethereum has regained a bullish formation following an impressive bounce from the $219 level of support on Monday.
It has since risen by 7.43% as it looks to re-test the $250 level of resistance over the next week in light of a slight recovery in the price of Bitcoin.
Bitcoin and Ethereum are closely correlated against their respective USD trading pairs despite Ethereum developing a bullish posture against its BTC trading pair.
The ETHBTC pair has printed a symmetrical triangle dating back to the yearly high on February 15.
It has touched the lower range of the triangle on two occasions while testing the upside three times, with the most recent one coming over the past fortnight.
If Ethereum can close a daily or weekly candle above 0.025BTC it would confirm a breakout with a rally likely extending to as far as 0.03BTC, which has not been tested since June, 2019.
Last June Ethereum rallied to $365 as optimism returned to the market in light of Facebook’s proposed cryptocurrency, Libra.
A return to 2019’s yearly high would mark a 55.35% rise from its current valuation, which tied into the recent Bitcoin halving narrative could be the start of a long-awaited bull market.
However, while Ethereum trades beneath $250 it remains in a neutral zone with it still being susceptible to a potential move to the downside.
Breaking below $219 for the first time since May 28 would demonstrate a lack of strength in this region with a plunge to $192 seeming likely.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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