Over the past week, Bitcoin, Ethereum (ETH), and other leading digital assets have finally begun to stall. The price of these assets have tanked across the board, losing around 10% since the highs put in last week. As of the time of writing this, Bitcoin is changing hands for $8,500 and ETH is trading for $166, which means the cryptocurrencies are trading well lower compared to the peak of last week’s surge.
Despite this, analysts are certain that the outlook for some cryptocurrencies remains bullish. Notably, traders are convinced that the second-largest cryptocurrency, Ethereum, is poised to explode higher.
Ethereum Ready To Surge Higher
Prominent cryptocurrency trader CryptoMichael recently depicted in a chart analysis that Ethereum’s price action over the past few days has been extremely bullish, drawing attention to three long wicks at the bottom of the past three daily candles, implying buyers are supporting prices.
With that in mind, he suggested that “ETH looks ready to launch,” drawing attention to $190 — 17% higher than current prices — as a potential target.
looks ready to launch pic.twitter.com/6ILE8BAuCX
— Michael's Trading Journal (@CryptoMichaelT) January 25, 2020
It isn’t only Michael who is optimistic.
Satoshi Flipper, a prominent cryptocurrency trader, recently pointed out that Ethereum’s weekly chart is showing relatively bullish signs after bottoming around $120.
He specifically noted that the Heiken Ashi candles, which are a special charting technique used to more easily determine trends, have turned green on the weekly chart, suggesting a medium-term bull trend is forming.
Flipper added that Ethereum has broken out of a falling wedge structure that constrained price action for six months, boding well for bulls.
— Satoshi Flipper (@SatoshiFlipper) January 23, 2020
Bitcoin Strength Could Bring Entire Market Higher
Analysts also expect Bitcoin to gain strength, adding fuel to the ETH bull case. Per previous reports from Ethereum World News, market commentator Jonny Moe on Saturday published 2 charts showing reasons why BTC could soon bound towards the high-$8,000s:
- Since last week, Bitcoin has been trading in a clear falling wedge pattern, marked by increasing lower prices and tightening price action. Falling wedges break upward nearly 70% of the time, The Pattern Site says.
- There are 2 bullish divergences forming between Bitcoin’s price and the Stochastic RSI and MACD, suggesting that the price of the cryptocurrency could soon recorrect higher.
Photo by Nader Arman on Unsplash