But if an important long-term technical indicator on Ethereum price charts flips bullish in the coming days, Ethereum may break above resistance, causing price to surge and the crypto asset to save the rest of the market from falling further.
ETH/BTC Long-Term Indicator About to Signal But Revival
The entire crypto market is driven by Bitcoin, and a select few of “major” altcoins with the highest market capitalization. Ethereum is one of those main market drivers, and was partly responsible for the 2017 crypto hype bubble due to the ICO boom.
Related Reading | ETH, XRP, LTC and Other Large Cap Altcoins Poised For 20% Breakout
But after that bubble popped, Ethereum fell over 90% from its all-time high, and it has struggled ever since – almost two full years now – to regain lost ground and return to a bull market.
Instead, each attempt the asset makes is swatted down further and further by bears. However, all of that may be coming to an end, if the MACD on weekly Ethereum price charts flips bullish in the coming days ahead.
Imagine selling now while before the 1 Week MACD crosses over Bullishly. That's the definition of weak hands.#Bitcoin #BTC $ZRX #ETH $ETH#ZRX $ETH $LTC $XRP $ALGO$EOS $XMR $ADA $XLM $TRX$XTZ $NEO $LINK $BNB $ETC$BCH $RVN $ENJ $REP $DASH pic.twitter.com/O5CxjZU3ZC
— CryptoCompetent ₿ ➐ (@CryptoCompetent) October 8, 2019
The important long-term indicator is already turning upward, suggesting that the flip is coming. And while the MACD is a lagging indicator and even though it appears to be aiming up, it could turn further down in the other direction. However, there are additional signals that suggest Ethereum is due for a pop.
Ethereum Could Outperform Bitcoin If Chart Pattern Completes
According to charts, Ethereum is forming what appears to be an inverse head and shoulders pattern on its BTC trading pair, and after repeated tests of overhead horizontal resistance, Ethereum looks poised to breakthrough. And with the MACD – an important momentum indicator – turning bullish, the momentum could be enough to push Ethereum through resistance and cause the asset to appreciate in value swiftly and significantly.
You got this $ETH
Lead the way my son. pic.twitter.com/grj1OaF8Xe
— Posty (@PostyXBT) October 8, 2019
If Ethereum rises here, it could cause the rest of the altcoin market to rise as well, as the entire asset class is highly correlated. Bitcoin and altcoins don’t always correlate as was witnessed from April 2019 to about September 2019, when altcoins bled out in their BTC ratios, however, Ethereum could help pull Bitcoin up from the current trading range back toward $10,000 and put an end to the current correction.
Related Reading | Crypto Market Death Cross Inches Closer, Will The Bear Market Return?
However, because Ethereum looks the most bullish when paired against Bitcoin versus the US dollar, it could also suggest that Ethereum will outperform Bitcoin by a wide margin in the days or weeks ahead. Given how much Bitcoin rallied this year and left alts in its dust, altcoins like Ethereum regaining lost ground is a very likely scenario.