Ethereum, the second-largest cryptocurrency by market capitalization, is currently experiencing extreme lows in sentiment despite the ongoing recovery in the cryptocurrency market. Despite this, controversy surrounding Ethereum continues to prevent the top altcoin from participating in the recent market rally.
Although Bitcoin’s breakout has had a positive impact on the overall market, it may take some time for Ethereum to catch up. However, the recent rise in price has put Ethereum on the verge of a long-term bullish crossover, which could potentially lead to significant gains.
One indicator signaling this bullish crossover is the 1M LMACD (Logarithmic Moving Average Convergence Divergence) indicator, which has consistently shown higher lows for Ethereum since its bottom in June 2022. This version of the indicator is used to compare historical price movements with current price action. A bullish crossover at the zero line in the indicator indicates a major shift in momentum, indicating a strengthening of bullish territory.
In the past, such crossovers have resulted in sustained bull markets for Ethereum and other altcoins, particularly in the DeFi (Decentralized Finance) space. The last bullish crossover occurred in May 2020 and lasted until a bearish crossover in January 2022, which triggered a lengthy crypto winter.
While the bullish crossover in the LMACD indicator is not yet confirmed, another indicator, the 1M On-Balance Volume (OBV), could provide further evidence of an eventual breakout. The OBV is known as the “smart money” indicator as it helps traders identify early moves by tracking subtle changes in trading volume.
All of these indicators point towards a potential breakout from an ascending triangle pattern that Ethereum has been trading within for almost 18 months. If this breakout occurs, it could signify a return to all-time highs for Ethereum, making it an especially significant event.
If Ethereum can join in on the ongoing bullish price action alongside Bitcoin and other altcoins, it could provide the necessary momentum for a dramatic crypto bull run.
Note: The original article from bitcoinist.com has been rewritten, and the source has not been mentioned or linked to.
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