The tides may be turning for Ethereum (ETH) and the broader altcoin market. In a recent analysis by prominent crypto analyst CryptoMoon, several technical indicators suggest a potential breakout from a prolonged downtrend, hinting at a significant rally in the near future.
This positive stance is partially supported by the recent technical development. For the first time in 16 months, Ethereum saw a monthly candle close above the 7-month Simple Moving Average (SMA) against Bitcoin (BTC). This occurrence is regarded as a turning point, confirming the possible reversal, where a significant moving average signifies the trend. Indeed, surpassing a 7-month SMA, is a signal for the bulls, indicating the end of a downtrend and the beginning of an upward path.
Stochastic RSI Signals Ethereum’s Bullish Potential
Further bolstering the bullish case is the Stochastic Relative Strength Index (RSI). This indicator, located at the bottom of the chart, is used to measure price momentum and identify oversold or overbought conditions. After showing oversold signals, the blue line on the RSI chart has just crossed above the orange line. Many analysts see this crossover as an indication of rising buying pressure, adding further fuel to the bullish sentiment towards Ethereum.
Ethereum’s current price of $3,799 reflects a minor dip of 0.40% in the last 24 hours, and its market capitalization stands at $456.33 billion. This slight pullback is a common occurrence after significant technical milestones. The market often undergoes a consolidation phase before potentially resuming its upward movement.
CryptoMoon’s analysis emphasizes an important turning point for Ethereum. A successful break above the downtrend resistance could trigger a burst of bullish momentum, potentially leading to significant price increases for Ethereum and other altcoins.
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