These 3 Technical Factors Imply Ethereum Will Jump Higher, Pass $300


Like most other cryptocurrencies, Ethereum hasn’t had the best past few days. The second-largest cryptocurrency fell off a cliff on Wednesday, plunging from a price just shy of $290 to a price as low as $245, per data from TradingView. ETH has since settled above $260, seemingly trying to establish some support before it decides where to go next.

According to a top analyst, Ethereum’s outlook for the next few days is currently leaning bullish. They pointed to a confluence of three technical factors to back this lofty sentiment.

Ethereum Is Printing a Flurry of Positive Signs

According to trader RookieXBT, Ethereum is printing three signs (on the six-hour chart) that it is about to surge higher, breaking past the pseudo-double top formation that formed just shy of $290 over the past three weeks:

  • ETH is currently printing an “ascending triangle structure,” marked by a number of tests of a horizontal resistance level and slowly-trending-higher prices. Ascending triangles most often break upwards.
  • The six-hour Relative Strength Index (RSI), a measure of the magnitude of price action, is creating a falling wedge structure. Falling wedges normally break upward.
  • There are hidden bullish divergences forming between the price of Bitcoin, which has been registering a series of higher lows, and the RSI, which continues to make lower lows. This suggests a breakout of the RSI wedge may come shortly, which should send Ethereum above the triangle that has constricted upward price action.
Related Reading: Analyst Who Called 30% Bitcoin Rally Sure Ethereum Ready to Jump Past $300

Long-Term Signs Bullish Too

That’s not all.

Per previous reports from NewsBTC, trader Alunaut recently noted that a monumental sign has been seen on the one-week chart of Ethereum: ETH recently crossed above and confirmed a close above the Ichimoku Cloud, boding extremely well for ETH’s bull case moving forward.

Indeed, when this was seen with Bitcoin in 2016, the cryptocurrency proceeded to rally by thousands of percent to $20,000 in the months that followed.

This historical precedent suggests Ethereum could do extremely well in the coming year or two years.

Not to mention, Ethereum’s one-month Moving Average Convergence Divergence (MACD) has just recently flipped from a bear to bull trend for the first time in two years, for the first time since October 2017.

With the MACD being a momentum indicator that tracks an asset’s trends, the indicator saying a bull trend is forming on the one-month chart is extremely positive for Ethereum bulls.

Featured Image from Shutterstock

Source link


Please enter your comment!
Please enter your name here