A series of technical indicators appear to be flipping bullish for Ethereum (ETH), according to Real Vision CEO and global economic expert Raoul Pal.
Pal says he’s identified a chart pattern that suggests ETH is on the cusp of cementing a bottom and beginning a sustainable uptrend.
According to Pal, Ethereum is demonstrating an inverted head and shoulders pattern, which typically signals that a downward trend is about to end.
“ETH is approaching the neckline of the inverted head and shoulders (pattern needs confirming still).”
Pal says that the validity of the inverted head and shoulders pattern is bolstered by readings on the DeMark indicator, used to anticipate market tops and bottoms or possible market turning points.
“BUT, Daily DeMark is showing a 13 and a 9 tomorrow… so breakout possibly fails on the first attempt, which is pretty typical of this pattern. Usually a trend line sharp pullback into the middle of the wedge and then upside break…”
“But the probability that the inverse head and shoulder is valid is increased significantly by the Weekly DeMark 9 that is in place… Nailed the low pretty much perfectly.”
A figure of 13 printing on the DeMark indicator suggests that the market is susceptible to a reversal. When the DeMark indicator prints the number 9, it is a buy signal if out of the 13 most recent bars, the four oldest bars closed higher than the nine bars that immediately follow.
Pal also says that when Ethereum is paired with Bitcoin (BTC), the second-largest crypto asset by market cap appears ready to steadily outperform the crypto king before breaking out of a channel that dates back to May of last year.
“And ETH/BTC looks like a running consolidation and should move towards the top of flag and then break out in due course.”
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