Real Vision CEO and global economics expert Raoul PalConsidering that a number of technical indicators point to an uptrend for Ethereum (ETH).
Pal thinks Ethereum is in a chart pattern, indicating that it is on the verge of starting a sustainable uptrend, after bottoms have solidified.
According to Pal, Ethereum (ETH)typically very close to ending a downtrend, displaying it with an inverted head and shoulders pattern.
“ETH is approaching neckline of inverted head and shoulders (pattern still needs to be confirmed).”
Pal also noted that whether the inverse head and shoulders pattern is valid is supported by readings from the DeMark indicator, which is used to predict market highs and lows or possible market turning points.
“However, the Daily DeMark is at levels 13 and 9 tomorrow… So the breakout on the first try, which is pretty typical for this model, will likely fail.”
“But the likelihood of head and shoulder reversal increased significantly with Weekly DeMark 9 applied… It hit the low almost perfectly.”
Having the DeMark indicator at level 13 is an important metric that shows the market is open to reversals. Since the DeMark indicator is included in the number 9, it is a buy signal if the oldest four bars out of the latest 13 bars closed higher than the nine immediately following it.
Pal also created Ethereum Bitcoin (BTC) Looking at the pair, he says that the second-largest crypto-asset by market capitalization appears poised to steadily outpace the crypto king before exiting a channel that stretched back to May of last year.
“And the ETH/BTC pair appears to be in an ongoing consolidation and should move to the top of the flag and then break out when the time comes.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.