Ethereum’s price has been teetering just above its crucial support that exists at the lower boundary of its long-established trading range.
This does appear to be an overt sign of technical weakness, although there are several reasons why some analysts still remain bullish on the cryptocurrency.
One trader is noting that ETH recently broke above a crucial resistance level seen while looking towards its BTC trading pair. The culmination of this breakout and its MACD turning green for the first time in several years seems to suggest upside is imminent.
A factor that could help fuel this rise against Bitcoin – especially if the aggregated market shows signs of weakness – is the potentially imminent collapse of what some analysts perceive as the DeFi “bubble.”
Another highly respected analyst who now contends that investors will soon cycle their massive profits out of DeFi-related tokens and into Ethereum, thus spurring a massive ETH uptrend.
Ethereum Flashes Signs of Immense Bullishness as MACD Flips Green
At the time of writing, Ethereum is trading down just over 1% at its current price of $229. This marks a decline below the lower boundary of its long-held trading range between $230 and $250.
It has declined below this level before over the past week, but each time it has been able to garner some strong buying pressure.
Despite appearing to be somewhat weak presently, the cryptocurrency has been showing some signs of strength against its Bitcoin trading pair.
One such sign would be its recent ability to break above a long-held descending resistance level that has been guiding it lower for over a year.
Another factor that one trader is pointing to as a reason why he is bullish on ETH is that its MACD indicator just turned green for the first time since its price collapsed earlier this year.
He contends that these two factors signal a bull run is imminent.
“ETH/BTC monthly MACD turning green while breaking-out long term resistance/accumulation. This is where it all starts,” he explained while pointing to the below chart.
Image Courtesy of Galaxy. Chart via TradingView
What Could Fuel This Looming Bull Run?
“Ethereum is about to break out of its freshman bear market, like Bitcoin did 9 years ago. Positive market sentiment is fertile soil for the future promise narratives that story assets like ETH thrive in. The recent DeFi bull market will implode shortly and feed into ETH,” he said.
Image Courtesy of Light. Chart via TradingView
Even if this does occur, it remains unclear as to whether or not the hundreds of millions of dollars that have been cycled into the DeFi ecosystem over the past few months will be enough to cause Ethereum to buck the market-wide downtrend.
Featured image from Shutterstock. Charts from TradingView.