Bitcoin’s rally over the past month has been impressive. But even more so is that of Ethereum.
The second-largest cryptocurrency is up more than 13% in the past 30 days, according to data from Coin360.com. Over that same time frame, Bitcoin dipped by 4%, while some altcoins like XRP and BSV plunged by nearly 10%.
ETH’s ability to outperform the rest of the cryptocurrency market has confirmed to some analysts that more upside is in the works. One analyst recently wrote in reference to the asset’s ability to hold above key support levels:
“ETH Daily [chart] – Bulls have built a pretty nice chart without any real buying pressure.”
Related Reading: Crypto Tidbits: $200M of Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish
A “Storm” Is Soon to Hit Ethereum Buyers
A prominent cryptocurrency trader recently said that Ethereum investors shouldn’t “cry when the storm hits,” referencing the chart below.
The chart shows that ETH is printing two key signs it is looking to reverse lower: 1) the TD Sequential indicator is on a “9” candle, most often seen at trend reversals (look at the red candles in the chart below); and 2) the price was rejected at a downtrend.
Expectations of downside for the Ethereum market were echoed by another trader, who shared the chart seen below.
It shows that when Bitcoin was rejected at $10,400 this week, ETH saw an equally as bearish rejection at the crucial $250 resistance.
The rejection for the top altcoin came right as its price met a downtrend that has constrained rallies over the past year, suggesting a 30% drop to $150 could soon arrive.
Fundamentals Still Favor ETH Bulls
While the technicals show a short-term reversal towards the $100s, the long-term fundamentals of Ethereum are still trending in favor of bulls.
Spencer Noon of DTCC Capital recently shared that by 10 on-chain signals, Ethereum is growing as a blockchain network. Higher usage of the network should correlate with higher ETH prices.
Some of the 10 signals Noon identified are as follows: the number of daily active ETH addresses has hit a two-year high, the value of stablecoins based on the network has breached $7 billion, and Ethereum miners are collecting~$400,000 in fees a day.
10 signs we're headed for a new $ETH bull market 👇🏼
— Spencer Noon (@spencernoon) May 26, 2020
Growth in decentralized finance also hints at more upside.
As reported by NewsBTC previously, data site DeFi Pulse found that the amount of value locked in blockchain finance applications is nearing $1 billion for the second time ever. Analysts expect decentralized finance to be one of Ethereum’s biggest catalysts for growth moving forward.
Featured Image from Shutterstock Price tags: ethusd, ethbtc A Ice-Cold "Storm" Is About to Hit Ethereum Buyers: Two Factors to Watch