Ethereum’s Potential for a Bullish Crossover Signals Recovery
Despite the ongoing recovery in the cryptocurrency market, Ethereum sentiment remains at extreme lows due to controversy surrounding the top altcoin. However, Bitcoin’s breakout may have the potential to revive Ether, albeit later than other coins. The recent rise in Ethereum’s price has brought it close to a long-term bullish crossover, indicating a major momentum shift.
Ethereum Readies Monthly Bullish LMACD Crossover
Throughout 2023 and since hitting its bottom in June 2022, Ethereum has consistently recorded higher lows. This positive trend has positioned ETHUSD for a bullish crossover of the 1M LMACD (Moving Average Convergence Divergence) indicator, which is used to compare historical price movements with current action. The crossover occurring at the zero line of the indicator strengthens its significance, signaling a shift into bullish territory.
Previous instances of such crossovers have resulted in sustained bull markets for Ether and altcoins, particularly within the DeFi space. The most recent occurrence was in May 2020, lasting until a bearish crossover in January 2022 triggered a lengthy crypto winter.
Domino Effect Could Trigger Triangle Breakout, Revisit ATHs
The potential bullish crossover in the LMACD is yet to be confirmed. However, if there is a breakout of the 1M On-Balance Volume (OBV) indicator, it could serve as an early indication of the outcome. The OBV is known as the “smart money” indicator, capable of helping traders identify moves early by monitoring subtle volume changes.
All these signals point towards a possible breakout from an ascending triangle pattern that ETHUSD has been trading within for almost 18 months. Should this breakout occur, it could lead to Ethereum revisiting its all-time highs, making it a significant development.
If Ethereum joins Bitcoin and other altcoins in the ongoing bullish price action, it could provide the necessary breadth for an impactful crypto bull run.
Hot Take: Ethereum’s Bullish Crossover Signals Positive Momentum
Ethereum’s potential for a bullish crossover in the LMACD indicator indicates a shift towards positive momentum. This comes at a time when the cryptocurrency market is experiencing a recovery. Although controversy has kept Ethereum from fully participating in the market’s excitement, Bitcoin’s breakout has revived hope for Ether’s revival. If Ethereum confirms the bullish crossover and breaks out of its current trading pattern, it could reach new all-time highs. This development holds great significance for the cryptocurrency market and may contribute to a broader bull run.
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