Long-Term Signal for Ethereum Flips Bullish: Heres Why It May Not Pan Out

Although Ethereum is still over 80% below its all-time high price, the asset has registered extremely positive price action over recent months. From the March capitulation lows of $88, the asset is up over 175%. And in the past day alone, ETH is up 10%, outperforming basically all other cryptocurrencies in circulation. The recent uptrend has allowed Ethereum to print an extremely positive sign, according to a prominent crypto trader. He noted in the chart below that on Kraken, the Moving Average Convergence Divergence (MACD) on the one-month Ethereum chart has crossed bullish for the first time ever: “Monthly MACD finally crossed bullishly… and moving up across the zero line,” the analyst wrote in reference to the chart below. Chart of Kraken’s Ethereum market from analyst Dave the Wave. The chart shows that ETH’s long-term MACD has flipped bullish for the first time ever. The MACD is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock’s price, according to Wikipedia. Ethereum Rally May Not Last, Analysts Say Despite this textbook bullish sign, prominent analysts are not convinced that Ethereum may not rally sustainably due to fundamental factors. Per previous reports from Bitcoinist, crypto-asset trading platforms are holding more Ethereum in aggregate than ever before. Addresses owned by the platforms like Bitfinex and Binance now hold ~18,000,000 ETH, around 15% of the total supply of the crypto asset. A prominent crypto data analyst remarked that this is likely to be a bearish sign for the cryptocurrency: “ETH balances are basically at all-time highs, and are up 132k ETH (~26M) since Black Thursday… My interpretation here is that it’s bullish for btc/bearish eth,” the analyst opined through a Twitter thread that was about cryptocurrencies that exchange wallets hold. Data shared by crypto analyst Ceteris Paribus (@Ceterispar1bus on Twitter). There are also some saying that Ethereum is currently not a proper investment. Earlier this year, Galaxy Digital’s Mike Novogratz explained that ETH remains in a “proving phase.” That’s to say, the asset doesn’t have the same track record or brand recognition as Bitcoin. 1. GLXY is a big investor in Ripple Labs. I would like to see them do well. @bgarlinghouse has done a great job as ceo. I commented the XRP tokens underperformed $btc last year because Ripple owns a lot of them. I have been almost solely long $btc for the past 15 months. — Michael Novogratz (@novogratz) February 6, 2020 All Altcoins Are Poised to Underperform Ethereum isn’t the only altcoin that may not rally sustainably, or may not rally as far and as fast as Bitcoin. Brave New Coin analyst Josh Olszewicz observed on May 15th that Bitcoin’s dominance macro chart — the portion of the crypto market made up of BTC compared to altcoins — printed a textbook golden cross formation. Finance education site Investopedia says that a golden cross forms when a “relatively short-term moving average crosses above a long-term moving average,” and is often followed by a “bullish breakout.” Chart from Josh Olszewicz (@CarpeNoctum on Twitter), a crypto analyst at Brave New Coin. The chart is of Bitcoin’s dominance printing a “golden cross” formation. Featured Image from Shutterstock

Originally from Bitcoinist.com https://ift.tt/2zAYK2l

source https://www.icocalendar.today/blockchain-news/long-term-signal-for-ethereum-flips-bullish-heres-why-it-may-not-pan-out