Ethereum Poised To Run
All eyes have been on Bitcoin, but some analysts think you would be remiss not to notice Ethereum (ETH). The popular cryptocurrency has underperformed Bitcoin, rallying by 100% year-to-date compared to Bitcoin’s 130%, but some are sure that ETH has upside potential.
Case in point, Ethereum’s one-day chart is about to see its 100 exponential moving average (EMA) and 100 simple moving average (SMA) cross over. As per a tweet from Brave New Coin’s Josh Olszewicz, the last time the asset saw a bullish cross in these two levels, what followed was a rally from single digits to $1,400 during the zany bull run of 2017. While it is unlikely that Ethereum will ever see such an explosion again, the impending moving average cross should be counted as bullish.
This isn’t the only positive sign for the Ethereum chart. According to Nebraskan Gooner, who yesterday postulated that Bitcoin could breach $400,000 if his indicator holds its water, the daily ETH chart is showing a consolidation breakout with a retest of support levels. This purportedly shows that Ethereum still sits in a “smooth uptrend”, boding well for bulls.
More importantly, however, the four-hour is looking strong, with ETH holding above key support levels, setting the stage for a breakout from the short-term triangle (seen below, right image). What’s more the on-balance volume (OBV), an indicator meant to predict trends through looking at volumes, is in a bullish flag and seems poised for a breakout to the upside. This is important, as OBV has actually become a leading signal for breakouts over recent months.