It has grown increasingly unclear in recent times as to whether or not the aftermath of the recent uptrend seen by Bitcoin and major altcoins like Ethereum marks any type of fundamental shift in market structure, or if it is simply another lower-high that will be followed by further losses.
In spite of this lack of clarity, analysts are now pointing to some bourgeoning technical patterns for guidance as to where the markets will trend next.
In the case of Ethereum, these technical signs seem to favor the cryptocurrency's bulls, as they may signal that it will soon see some further upwards momentum.
At the time of writing, Ethereum is trading down nominally at its current price of $165, and it appears to be closely tracking Bitcoin's price action as the markets attempt to establish some momentum.
One technical factor that should be considered in the near-term is that Ethereum appears to be currently trading within a bull flag, which could mean that this bout of sideways trading will be followed by a massive upwards movement.
"Ethereum: What was a bullish pennant, now perhaps a bull flag. Volume decreasing, textbook for a pennant," Mr. Jozza, a prominent cryptocurrency analyst on Twitter, explained while pointing to the chart seen below.
These factors could bolster eth's bulls and perpetuate a major upside swing.
The bull flag that Ethereum is currently in the process of forming isn't the only factor currently counting in the favor of the cryptocurrency's bulls, as Bitcoin Jack - another prominent analyst - pointed out a few other key factors that should be considered by investors.
"ETH vs BTC daily chart update: Volume down-trend broken on sharp move up. Rejection of resistance was met with flipping old local resistance in to support. If price can breach into old range above, target 1 becomes viable quickly. A pullback into green is for buying," he said while referencing the levels marked on the below chart.
Bitcoin's price action may have significant influence over that of Ethereum and other altcoins, but the technical factors discussed above may be enough to allow ETH to break its BTC correlation and garner some independent momentum.
This technical formation could mean Ethereum is in for massive short-term upside
gepubliceerd op Jan 17, 2020
by Cryptoslate | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.