- Ethereum has seen a robust macro rally over the past 2-months, rallying from $240 to $420 as of this article’s writing.
- ETH traded higher, as high as $440 just two weeks ago.
- The Tom Demark Sequential predicts that ETH’s rally will pause for some weeks, & maybe reverse lower.
- This assertion comes courtesy of a historically accurate signal for Ethereum.
- Bitcoin’s price action may end up determining ETH’s, however.
ETHEREUM’S VALUE UPSURGE WILL PAUSE IN THE NEARBY FUTURE
According to a Telegram channel tracking appearance of the Tom Demark Sequential “9” candle, Ethereum is bearish. It shows that ETH has formed a “sell 9” candle against the dollar on its weekly chart. Such “9” candles are seen before bearish inflection points in the trend of an asset.
The Tom Demark Sequential has had eerie accuracy in predicting Ethereum worth action over recent years. The appearance of the bearish signal comes as crypto analysts have flipped bullish on ETH after it managed to print a reversal candle just this previous week; one particular trader targeted $405 as the point that they would turn from bearish to bullish on Ethereum. The coin now trades for $420.
“If you ask, “why?” $405 represents the cleanest set up with the best stopping point for me to believe that the correction is over & the uptrend resumes. It’s simply the line in the sand for my setups, below, short favored, above, we resume upside movement. Good movement on $ETH right up into $405. Somewhere around here is the major decision point for me,” the trader held on the importance of worth action around $405.
DICTATED BY BITCOIN’S WORTH ACTION
What may end up pushing Ethereum higher from this consolidation is worth action in Bitcoin. The leading cryptocurrency, after all, dictates the directionality of the rest of the cryptocurrency market. Analysts are presently expecting BTC to break soon higher as the fundamentals of the asset linger to strengthen. For example, investing giant Fidelity Investments exposed last week that it has its Bitcoin fund.