After Surging 25% in 5 Days, Ethereum Forms Sign Last Seen Before March Dump
- Ethereum has seen an extremely strong rally over the past few days. The asset reached a high of $310 on Saturday — the highest price in 2020 thus far.
- ETH is up approximately 25% in the past days, having benefited from an extremely strong influx of capital inflows. Some think these inflows are from altcoins devaluing against BTC and ETH.
- Unfortunately, the cryptocurrency may have reached a local high as Ethereum just formed a signal last seen at the March highs.
Ethereum’s extremely strong rally over the past week may soon come to an end as a trend indicator suggests a top may be forming.
Ethereum May Be At a Top After Strong Rally
Although Ethereum’s price action over recent days has convinced many that a bull run is in the works, the trend may be exhausted for the time being.
One trader noted that a private indicator he is using that tracks the persistence of trends is forming a reading last seen before the “March dump.”
“Watch for a local top on $ETH based on 10 day trend persistence.. highest in Feb was 12.30, March dump highest was 12.25, we are currently at 12.21.”
There are others expecting and other indicators signaling a chance at a retracement in the Ethereum price.
As reported by Bitcoinist previously, the Tom Demark Sequential just printed a sell “9” candle on Ethereum’s chart against Bitcoin. The TD Sequential is a popular time-based indicator that prints “9” and “13” candles at inflection points in an asset’s trend.
An analyst has also observed that a series of divergences formed on Ethereum’s short-term charts. These divergences suggest that while ETH may be pressing higher, it is forming an underlying bearish trend.
“I am seeing a couple of divergences on ETH, both htf (3D) and ltf (4h) showing up now. But I don’t see them on BTC, 1D 3D fine, slight one on the 4h (to be confirmed)… ETH going to go into an overextension now, maybe a blow off.”
Don’t Fade the Rally?
One trader who called the ongoing Ethereum rally, though, is saying that he doesn’t think it’s a good idea to fade the rally.
He seemingly made this comment from a macro time frame perspective, though. The trader has attributed the optimism to a number of fundamental trends, including increased DeFi adoption and a growing number of transactions.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com After Surging 25% in 5 Days, Ethereum Forms Sign Last Seen Before March Dump