The crypto market has found itself in a steep recovery over the past 50 days. Ethereum, in particular, has risen sharply from its December lows, rising from $ 120 to $ 220, which is the second largest cryptocurrency at the time of this writing.
According to a prominent trader, this rebound in ETH price has caused a key technical indicator to become bullish, suggesting that a long-term uptrend is beginning that will bring Ethereum hundreds of percent higher.
Related reading: Bitcoin funding rate hits 0.12% on BitMEX: BTC has historically fallen 7% after that
Massive technical signal supports Ethereum bulls
As noted in a recent tweet from popular cryptocurrency trader Galaxy, the Moving Average Convergence Divergence (MACD) on Ethereum’s one-month chart has turned from a bearish to an upward trend for the first time in two years, for the first time since October 2017 .
More specifically, after almost two years of downtrend, Ethereum’s monthly MACD turned green in January, followed by another green candle printing for the current month.
Since the MACD is a momentum indicator that tracks an asset’s trends, the indicator that says that an uptrend is forming on the one-month chart is extremely positive for Ethereum bulls.
“Wow Bro, look how $ ETH pumps”
Lol stfu and zoom out. It’s just beginning. pic.twitter.com/BazN3ZJsCd
– Galaxy (@galaxyBTC) February 7, 2020
The last time this indicator was seen, the cryptocurrency rose from $ 300 to a high of $ 1,440 in less than six months – an increase of nearly 400%.
If Ethereum formed an uptrend like the last time its monthly MACD formed an uptrend, the price of the asset will hit $ 1,056 by March or April.
Unfortunately, this exact scenario is unlikely to play out. However, Galaxy has a few more theories about how the price of Ethereum will perform in the coming months.
What will happen this time
According to previous reports from NewsBTC, Galaxy stated in an earlier analysis that Ethereum could be on the verge of rising towards $ 850 – 284% above current prices.
As crazy as this may sound, in the analysis released Jan. 21, he noted that Ethereum’s weeklong Relative Strength Index is on the verge of breaking major resistance (it already has it), a major downtrend affecting prices in the past two years has restricted years (it already has) and horizontal resistance above $ 322 (pending).
$ ETH is still weeks away from breaking its 2-year downtrend.
Possible bull signal is coming next week.
February is the starting month. pic.twitter.com/G7MUzIA03Y
– Galaxie (@galaxyBTC) January 21, 2020
That confluence, he claimed, could push the price of Ethereum up to $ 850 by July or August.
Given the major developments in the decentralized financial ecosystem and the move of the blockchain to its 2.0 iteration, such a price may not be as far away as it seems.
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