Over the past seven days, Ethereum (ETH) has exploded higher, gaining 20% according to price data from Coin360. This meant that it outperformed Bitcoin (BTC), which gained 9% within the same time period.
ETH has actually underperformed a swath of other altcoins, some of which saw massive parabolic rallies in the span of a few days: the Satoshi Vision fork (BSV) gained around 250% at the peak of the rally this week, Ethereum Classic gained 100% in a few days, and ZCash more than doubled.
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Despite ETH’s objectively extremely strong performance, analysts are currently worried about what comes next for the second-largest cryptocurrency by market capitalization.
Ethereum Not Headin’ Any Higher, Analyst Concludes
Full-time cryptocurrency trader Calmly recently pointed out that Ethereum’s two-hour chart is showing clear signs of topping in the short term. He elaborated on this point, writing:
“Hard for me to call a top on Bitcoin right now So instead I’ll trade a setup that’s much more convincingly bearish. Ethereum is at weekly resistance and I think the high of the week might have just been put in.”
#Ethereum – Hard for me to call a top on #Bitcoin right now
So instead I'll trade a setup that's much more convincingly bearish. #Ethereum is at weekly resistance and I think the high of the week might have just been put in. pic.twitter.com/XfpMPE5gRN
— Calmly | full-time trader (@im_calmly) January 17, 2020
Indeed, his chart shows that ETH put in a clear swing failure candle, rejecting from $175. He thus noted that the cryptocurrency could retrace 10% or so towards $150 from current prices.
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Largely Dependent on Bitcoin’s Price Action
While ETH’s chart is currently looking harrowing in the short term, Ethereum’s price action is primarily dependent on Bitcoin.
And interestingly, analysts are saying BTC is looking bullish in the medium term. Per previous reports from NewsBTC, Adaptive Capital’s Murad Mahmudov, formerly of Goldman Sachs, recently wrote on Twitter that “bears are deluded at best, dishonest at worst,” drawing attention to the below chart which shows that BTC has crossed above a number of key moving averages.
These are including but not limited to the 128-day simple moving average (SMA), 200-day exponential moving average (EMA), 50-week SMA, and 100-week SMA.
Also, the Lucid Stop and Reversal indicator, which “signals a stop and an entry in the opposite direction” when it reverses, just printed an extremely bullish signal; the indicator printed its first buy signal since March 2019, which was prior to a 330% rally that brought BTC above $10,000 and Ethereum dozens of percent higher.
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