Ethereum’s Price Rally Will Pause in the Near Future
According to a Telegram channel tracking appearance of the Tom Demark Sequential “9” candle, Ethereum is bearish.
The Telegram channel shared this chart below on the morning of August 31st. It shows that ETH has formed a “sell 9” candle against the dollar on its weekly chart. Such “9” candles are seen prior to bearish inflection points in the trend of an asset.
The Tom Demark Sequential has had eerie accuracy in predicting Ethereum price action over recent years. As the chart below shows, there was a “sell 9” candle at the May highs, prior to a four-week retracement, and there was a “buy 13” at the March capitulation lows.
There are also three other instances shown in the chart below where ETH has come in handy.
Chart of ETH's price action over the past few years with the Tom Demark Sequential from a Telegram channel tracking the indicator. Chart from TradingView.com
The appearance of this bearish signal comes as crypto analysts have flipped bullish on ETH after it managed to print a reversal candle just this past week.
As reported by Bitcoinist, one certain trader targeted $405 as the point that they would turn from bearish to bullish on Ethereum. The coin now trades for $420.
Chart of ETH's price action over the past few weeks with analysis by crypto trader Cold Blooded Shiller (@Coldbloodshill on Twitter). Chart from TradingView.com
Dictated by Bitcoin’s Price Action
What may end up pushing Ethereum higher from this consolidation is price action in Bitcoin. The leading cryptocurrency, after all, dictates the directionality of the rest of the cryptocurrency market.
Analysts are currently expecting BTC to soon break higher as the fundamentals of the asset continue to strengthen. For instance, investing giant Fidelity Investments revealed last week that it has its own Bitcoin fund.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com This Historically Accurate Signal Predicts Ethereum's Rally Will Pause
Originally from Bitcoinist.com https://ift.tt/32DLkNj
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