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Like most other cryptocurrencies, Ethereum hasn’t had the best past few days. The second-largest cryptocurrency fell off a cliff on Wednesday, plunging from a price just shy of $290 to a price as low as $245, per data from TradingView. ETH has since settled above $260, seemingly trying to establish some support before it decides where to go next.
According to a top analyst, Ethereum’s outlook for the next few days is currently leaning bullish. They pointed to a confluence of three technical factors to back this lofty sentiment.
Ethereum Is Printing a Flurry of Positive Signs
According to trader RookieXBT, Ethereum is printing three signs (on the six-hour chart) that it is about to surge higher, breaking past the pseudo-double top formation that formed just shy of $290 over the past three weeks:
- ETH is currently printing an “ascending triangle structure,” marked by a number of tests of a horizontal resistance level and slowly-trending-higher prices. Ascending triangles most often break upwards.
- The six-hour Relative Strength Index (RSI), a measure of the magnitude of price action, is creating a falling wedge structure. Falling wedges normally break upward.
- There are hidden bullish divergences forming between the price of Bitcoin, which has been registering a series of higher lows, and the RSI, which continues to make lower lows. This suggests a breakout of the RSI wedge may come shortly, which should send Ethereum above the triangle that has constricted upward price action.
Bull thoughts on Ethereum:
– Price is printing an ascending triangle structure
– RSI creating a falling wedge structure
– Hidden Bullish Divergences as price makes higher lows, and RSI makes lower lows
An RSI breakout from wedge would be indicative.
🐂🐂🐂 pic.twitter.com/rmEluzJqHQ
— RookieXBT 🧲 (@RookieXBT) February 22, 2020
Related Reading: Analyst Who Called 30% Bitcoin Rally Sure Ethereum Ready to Jump Past $300
Long-Term Signs Bullish Too
That’s not all.
Per previous reports from NewsBTC, trader Alunaut recently noted that a monumental sign has been seen on the one-week chart of Ethereum: ETH recently crossed above and confirmed a close above the Ichimoku Cloud, boding extremely well for ETH’s bull case moving forward.
https://twitter.com/onemanatatime/status/1230908815354159104
This historical precedent suggests Ethereum could do extremely well in the coming year or two years.
Not to mention, Ethereum’s one-month Moving Average Convergence Divergence (MACD) has just recently flipped from a bear to bull trend for the first time in two years, for the first time since October 2017.
With the MACD being a momentum indicator that tracks an asset’s trends, the indicator saying a bull trend is forming on the one-month chart is extremely positive for Ethereum bulls.
Featured Image from Shutterstock
