Ethereum is on the track of registering more losses eves as it trades 196 percent higher on a year-to-date timeframe.
A pseudonymous analyst highlighted a string of technical and fundamental catalysts that could push the second-largest crypto lower. He first noted that ETH/USD is repeating a market setup from the mid-2019, wherein the pair early rallied strongly but then pared a majority of its gains.
ETH/USD cycle from 2019 showing its massive downside correction following a major rally. Source: TradingView.com
Ethereum performed strongly in 2020, especially in the aftermath of March 2020’s global market rout led by the fast-spreading COVID-19 pandemic. Its gains surpassed even that of Bitcoin, the top cryptocurrency, because of its parent blockchain’s growing involvement with the booming stablecoin and decentralized finance sector.
But more recently, ETH/USD showed signs of bullish exhaustion. The pair corrected lower by as much as 36.6 percent from its YTD high at $488.95. It attempted to bounce back but a strong selling pressure near the $385-400 area kept its bullish retracement tryouts under wraps.
The pseudonymous analyst eyed the repeated pullbacks from the said range as a signal