Ethereum Has Surged 15% in 48 Hours But a Bearish Signal Just Appeared
- Ethereum has finally begun to surge after a macro bear market. As of this article’s writing, the asset trades for $288, a 2020 high.
- The asset has achieved this high after a strong 15% surge in the past 48 hours.
- Unfortunately for bulls, a bearish signal just appeared that could deny further upside for ETH, at least for the time being.
- Ethereum may have a fundamental case that allows it to continue to rally higher in the long run, though.
Just 48 hours ago as of the time of this article’s writing, Ethereum was trading for $245. The leading cryptocurrency now trades for $288 — a bit more than 15% higher than that aforementioned price.
The cryptocurrency could see a correction, though, according to a tried and true technical indicator.
Ethereum Could See a Correction From Here, Predicts Indicator
Ethereum could see a strong correction against Bitcoin according to the Tom Demark Sequential. The TD Sequential is a time-based indicator that prints “9” and “13” candles at inflection points in the trend of an asset.
According to the chart below, shared by a Telegram channel that tracks TD signals, ETH just printed a “sell 9” candle against BTC on a weekly scale.
Adding to the expectations of a correction, analysts have noted that $290 is a pivotal level for the cryptocurrency. It is where previous rallies, like the one in February, found a high and where Ethereum has historically found support.
Take the chart below. It shows ETH’s macro price action (over the past three years). As can be seen, the price zone around $290 has been of extreme importance for Ethereum bulls and bears.
Take late-2017, for instance, where it spent multiple weeks holding above $290 without breaking below that region.
This historical precedent suggests that Ethereum will struggle to pass this region this time around. How that plays out, though, remains to be seen.
How About Its Bullish Fundamentals?
While there is this technical case for a correction, the asset’s proponents remain certain that the asset is undervalued from a fundamental perspective.
They cite the recent adoption in the decentralized finance space, which has injected billions of value and economic transfers into the Ethereum network. These commentators add that because DeFi promotes investors to lock up their ETH, prices should be driven higher.
Some, though, are not too sure that Ethereum has value. Bitcoin whale Joe007 commented earlier this year:
“DeFi is nothing but just another marketing ploy by a shadow gang of snake oil salesmen behind Ethereum. It’s obvious they’re trying to create another ICO-like mania. With the same 0 real utility in the real world.”
He added in a more recent comment that ETH is unlikely to reach its $1,400 all-time high ever again.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Has Surged 15% in 48 Hours But a Bearish Signal Just Appeared
How to get the Bovada Bitcoin Bonus in 2021 worth up to a maximum total of $3,750
In this article we will explain how to get the Bovada Bitcoin bonus - it's…
What is the Best Bitcoin Wallet for Sports Betting?
Welcome to our aticle which will help you find the answer to the question of;…
Traders Forecast Bitcoin Will See a “Cool-down Period” as Rally Overheats
[ad_1] Bitcoin has been caught within the throes of a consolidation phase ever since its…
Digital Euro, CBDCs and Bitcoin – Bitcoin Magazine
Listen To The Episode: This episode of Bitcoin Magazine’s Fed Watch is a cosmic ride…
Analysts Expect Move to $20,000 High as Bitcoin Holds Key Supports
[ad_1] Bitcoin underwent a rapid correction last evening after the coin pressed as high as…
Bitcoin Entrepreneur Malcolm CasSelle Dies At 50 – Bitcoin Magazine
[ad_1] Malcolm CaSelle, a pioneering blockchain technology and Bitcoin entrepreneur, has died at age 50,…