Bitcoin’s rally in the past month has been impressive. But even more is that of Ethereum.
The second largest cryptocurrency has risen by more than 13% in the last 30 days data from Coin360.com. In the same time frame, Bitcoin fell 4% while some altcoins such as XRP and BSV fell nearly 10%.
ETH’s ability to outperform the rest of the cryptocurrency market has confirmed to some analysts that there is more benefit in the making. An analyst recently wrote about the asset’s ability to stay above key support levels:
Still, a prominent analyst fears a “storm” is on the way for Ethereum, citing two technical factors that indicate an imminent trend reversal.
Related Read: Crypto Facts: $ 200 Million In Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish
Ethereum buyers will hit a “storm” soon
A prominent cryptocurrency trader recently said that Ethereum investors should not “ cry when the storm strikes, ” referring to the chart below.
The graph shows that ETH prints two key signs that it wants to reverse lower: 1) the TD sequential indicator is on a “9” candle, usually seen in trend reversals (look at the red candles in the table below); and 2) the price was declined on a downward trend.
Expectations for the Ethereum market were disadvantageous repeated by another trader who shared the chart below.
It shows that when Bitcoin was rejected for $ 10,400 this week, ETH saw an equally bearish rejection of the crucial USD 250 resistance.
The rejection for the highest altcoin came in well as the price hit a downward trend that has limited rallies in the past year, suggesting a 30% drop to $ 150 could soon come.
Basics still prefer ETH Bulls
While the technicals are showing a short-term reversal towards the $ 100, Ethereum’s long-term fundamentals are still in favor of bulls.
Spencer Noon of DTCC Capital recently shared that Ethereum is growing with 10 on-chain signals as a blockchain network. Higher use of the network should be associated with higher ETH prices.
Some of the 10 signals are in the afternoon identified are as follows: the number of daily active ETH addresses has peaked in two years, the value of network-based stablecoins has exceeded $ 7 billion, and Ethereum miners are collecting ~ $ 400,000 in fees per day.
10 signs that we are on our way to a new one $ ETH bull market 👇🏼
– Spencer Noon (@spencernoon) May 26, 2020
Decentralized financing growth also indicates more upward momentum.
As previously reported by NewsBTC, data site DeFi Pulse found that the amount of value locked in blockchain financing applications for the second time ever approaches nearly $ 1 billion. Analysts expect decentralized financing to be one of the biggest catalysts of Ethereum for further growth.
Featured Image from Shutterstock Price tags: ethusd, ethbtc A Ice-Cold "Storm" Is About to Hit Ethereum Buyers: Two Factors to Watch