Ethereum has seen a strong correction from the highs it has seen earlier this month. After peaking at $440, the asset has slid to $385 as of this article’s writing. ETH’s retracement comes as Bitcoin has also dropped, seemingly in response to some weakness in the price of gold and some strength in the U.S. dollar.
The leading altcoin remains in a downtrend, with lower highs and lower lows formed in succession. A key signal, though, is predicting a reversal in the price of Ethereum, along with the prices of many altcoins.
The signal was formed by a popular technical indicator used by cryptocurrency traders.
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, ETH DeFi Boom, BitMEX KYC
Ethereum & Altcoins Form Potential Reversal Signal: TD Sequential
The Tom Demark Sequential (TD Sequential) is currently printing a bullish reversal signal for Ethereum after the correction.
According to a Telegram channel tracking the indicator, ETH’s USD one-day chart has formed a “buy 9” candle. These candles are often seen when an asset is poised to reverse to the upside.
In ETH’s current case, the appearance of this signal implies Ethereum will rally back to the upside in the days ahead.
The same Telegram channel also noted that similar signals were seen with XRP, Binance Coin, Cardano, and a swath of other cryptocurrencies. Even Bitcoin got its own “buy 9” candle, showing how correlated the crypto market can be at times.
Chart of ETH's price action over the past few months with the Tom Demark Sequential from a Telegram channel tracking instances of the indicator. Chart from TradingView.com
Traders also think Ethereum could soon return to an uptrend. A historically accurate analyst recently explained the following, suggesting a move to $500 for ETH is likely.
“Short term downtrend broken on eth, it successfully had everyone flip bearish over the weekend, now it needs to flip these 50 and 100mas on 4h and its clear skies to $500. Not out of danger just but its looking much nicer,” he explained.
There is also a fractal suggesting ETH will soon hit $500 as reported by NewsBTC previously.
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
All Eyes on Gold (and the U.S. Dollar)
Although Ethereum seemingly has nothing to do with gold, it’s worth noting that the precious metal is seemingly dictating crypto at the moment.
Gold is in limbo as of this article’s writing due to uncertainties around Federal Reserve Chairman Jerome Powell’s stance on inflation. Powell is expected to speak in the next day regarding his thoughts on the state of the economy and what the central bank can do to fix it.
Related Reading: Crypto Tidbits: Dave Portnoy Drops Bitcoin, Tether Supports Ethereum’s OMG Network, DeFi Still Hot
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Textbook Signal Is Predicting a Stunning Reversal For Ethereum & Altcoins
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