The technicals for Ethereum displayed strong bull run signals which might push the price above the $200-level, breaking its six-month high. November 2018 was a bloodbath, with Ethereum, like Bitcoin and other altcoins, nosediving to new lows. The prices have since been trying to recover from the dip.
ETH/USD’s one-day chart showed the formation of an ascending triangle pattern. Regardless of where they are formed, the pattern is bullish. Ethereum’s prices have been consistently forming higher lows for almost five months now. The reaction lows of the prices form the ascending line of the pattern. Meanwhile, a clear divergence between the price and volume can be seen.
The aforementioned points fulfill the criteria and confirm the formation of an ascending triangle. Hence, when the price breaks this pattern, a breakout to the upside, i.e., a bullish breakout, can be expected. This breakout could very well push the price of Ethereum past the six-month high, just like Bitcoin. Additionally, the MACD indicator shows that it is ready for a breakout as there is a bullish crossover has been recorded.
Further, there is resistance from $160 to $175, which is already being tested. If the price breaks out of this range, then the probability of a breakout will be higher. Ethereum’s price movement is very closely correlated with that of Bitcoin. More specifically, Ethereum’s price movements usually correspond to that of Bitcoin, despite lagging behind BTC’s own price movements. Thus, it can be expected that the price of ETH might follow Bitcoin’s trail and overcome the six-month high.
A Twitter user, @TheCryptoDog, commented,
“$ETH looking like $BTC about $1,000 ago.”
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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