Chief Market Strategist Watching Possible W-Bottom Formation In Ethereum
According to a chief market strategist, Ethereum could form a
possible w-bottom, an indicator that usually suggests a bull
market. Strategist: Ethereum Might Form A “Higher High” In a call
with MarketWatch, Matt Maley has said that ETH could be moving in a
bullish direction if certain conditions are met. Maley is a chief
market strategist at Tabak and Co., and during the call with
MarketWatch, the strategist has talked about Bitcoin and Ethereum.
According to Maley, the 200 Daily Moving Average (DMA) is an
important level, breaking above which would be bullish for the
crypto. At the moment, this value is around $2,141, something ETH
has already broken. Ethereum could then go on to break $2,880, the
same value as the high from late May-early June, to form an
indicator called the “higher high”. The crypto has already formed
“double bottoms” and a minor higher high. ETH only needs to form a
more important higher high now. According to Maley, something like
this would be “particularly bullish” for the cryptocurrency.
However, one thing to note is that ETH is somewhat overbought right
now, based on the Relative Strength Index, which is an indicator
that measures the ratio of the recent losses to recent gains.
Related Reading | TA: Ethereum (ETH) Outpaces Bitcoin, Why Bulls
Aim Larger Increase When ETH is said to be overbought, it means the
cryptocurrency is believed to be trading above its fair value.
Investors “overbuy” without any investment rationale, and the price
goes up. Usually, a phase of overbought is followed by a selling
period. ETH Price At the time of writing ETH’s price floats around
$2.6k, up 12% in the last 7 days. Over the past month, the
cryptocurrency has amassed 19% in gains. Below is a chart that
shows the trend in the price of Ethereum over the last 6 months.
ETH continues to enjoy the upwards trend | Source: ETHUSD on
TradingView As the graph shows, the crypto has been on an uptrend
since 20 July. On a closer examination of the graph, it becomes
apparent that the coin seems to be forming a “W” where the first
peak was the earlier mentioned $2,880 point, with the first bottom
following soon after in the third part of June. Related Reading |
Ethereum Breaks 200,000 Validators Milestone, Over $14 Billion Now
Staked In ETH 2.0 After that, ETH forms a smaller peak early July,
and another bottom on the aforementioned 20 July. Now, if ETH
continues to follow the uptrend, it will return to the point of the
first peak. This is the important “higher high” that’s needed for a
bullish trend. However, it’s unclear whether Ethereum can break
that level as the crypto is slightly overbought right now. The
price could go down if investors decide to sell before the higher
high is made.
Graph Token (COIN:GRTUSD)
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