ethereum Sentiment Remains Low Despite Market Recovery

Despite a recovery in the cryptocurrency market, ethereum sentiment is currently at extreme lows. The top altcoin has been unable to fully join in on the market’s positive momentum due to ongoing controversy surrounding it.

However, it is important to note that a rising tide lifts all boats, and the recent breakout of bitcoin could potentially revive ethereum, although perhaps later than other coins. In fact, the recent price rise has brought the top-ranked altcoin to the brink of a long-term bullish crossover. Let’s explore what this signal means.

Preparing for a Bullish Crossover of the 1M LMACD

Throughout 2023, ethereum‘s price has consistently formed higher lows, starting from its bottom in June 2022. After nearly 18 months, ETHUSD is now on the verge of a bullish crossover of the 1M LMACD, which is the logarithmic version of the Moving Average Convergence Divergence indicator.

This logarithmic version of the tool allows for better comparison of historical price movements with current price action. A bullish crossover of the 1M LMACD indicates a significant shift in momentum, and it becomes even more powerful when it occurs right at the zero line of the indicator. Crossing above the zero line acts as a secondary signal, indicating that momentum has firmly shifted into bullish territory.

In the past, such crossovers have led to sustained bull markets for ethereum and altcoins, particularly in the DeFi space. The previous bullish crossover occurred in May 2020 and lasted until a bearish crossover in January 2022, which marked the beginning of a prolonged crypto winter.

See also  Crypto Traders Bullish, Bad For Bitcoin?

ethereum bullish” width=”640″ height=”398″ srcset=”https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-640×398.png 640w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-980×609.png 980w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-768×478.png 768w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-1536×955.png 1536w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-2048×1274.png 2048w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-750×466.png 750w, https://bitcoinist.com/wp-content/uploads/2023/11/IMG_6116-1140×709.png 1140w” sizes=”(max-width: 640px) 100vw, 640px”/>

A Potential Triangle Breakout and Return to All-Time Highs

While the bullish crossover of the 1M LMACD is not yet confirmed, a breakout of the 1M On-Balance Volume (OBV) indicator could provide a hint at the eventual outcome. The OBV indicator, often referred to as the “smart money” indicator, helps traders identify early moves by tracking subtle changes in volume.

All of these signals together suggest a possible breakout from an ascending triangle pattern that ETHUSD has been trading in for nearly 18 months. If this breakout occurs, it could have significant implications as it projects a potential return to all-time highs for ethereum‘s price.

If ethereum manages to join the ongoing bullish price action alongside bitcoin and other altcoins, it could provide the necessary breadth for a dramatic crypto bull run.





### News source: bitcoinist.com

By Team