Ethereum, the second-largest crypto in the world, showed some exciting price movement earlier this morning when it registered a massive surge that sent it to highs of $396.
This price movement occurred in tandem with an identical one witnessed in the BTC price charts.
The leading crypto pushed as high as $11,600 in earlier trading sessions, and the tailwind it created guided the ETH price above the $390 resistance level.
Shortly after, BTC lost momentum and quickly reversed gains to plunge below the $11,200 level of support.
The severe correction led to BTC revisiting a swing low near $11,129, but the bulls managed to guard the support near $11,140, resulting in a fresh uptick to $11,471 during press time.
Similarly, ETH lost momentum after its morning highs and rapidly dropped to lows of $380, before it stabilized at its current price of $389.
Where are ETH and BTC Headed Next?
The BTCUSD pair is currently struggling to clear the $11,5K resistance and a bearish trend line forming with resistance near $11,420.
If the asset fails to continue higher above the $11,400 and, there could be another bearish reaction that would send prices towards $11,280.
The flagship crypto shows some positive signs above $11,140, where a possible double bottom pattern is forming in the chart below.
BTC Price Chart Showing Double Bottom Pattern | Source Tradingview
The double bottom indicates that BTC has formed a strong base of support above 11,200, and it could start a new rally if it manages to close above the $11,300 level.
As we have seen, ETH and BTC are showing some correlations to one another at the present moment.
Therefore, it seems likely that where ETH price trends next will largely depend on whether or not the BTC price can guard against a drop below $11,300.
ETH is Trading Between Crucial Levels
Besides its current correlation with BTC, one analyst is also using Ethereum’s market structure to predict its likely price movement in the coming sessions.
Analyst and trader Crypto Cactus observed that the ETHUSD pair trades between two crucial levels ($390 & $378).
“Either we see $390 reclaimed soon or $378 is going to be broken and we see further downside to around $365 region,” he tweeted while pointing to the chart below.
It seems that the coming few days could offer better insights into the state of the mid-term ETH uptrend that has guided its recent price movement.