In just 48 hours, Ethereum shot up more than 50% from $ 770 to about $ 1140 at last night’s high. The huge Sunday candle was the lead up to a sell signal on daily timeframes.
Was this latest push higher than the latest boost in Ethereum’s bull trend? Or like Bitcoin, this sell signal will fail and it will take the top spot altcoin rises to a new record level?
Happy New Year: Ethereum up more than 50% first week to 2021
While it’s hard to argue that 2020 was the year of Bitcoin, Ethereum outperformed the best cryptocurrencies by a considerable margin. With just four days into the New Year, 2021 already looks like an encore performance to come.
For the 30% ROI that Bitcoin has to show for the year so far, Ethereum has grown by more than 50% from the start of the year to last night’s high.
Related reading | Ethereum Transaction Fees Rising Hints in Round Two of DeFi Season
The higher high on daily timeframes on the USD trading pair has resulted in a perfected sell setup using the TD Sequential indicator created by the Market Timing Wizard Thomas Demark.
The tools had proved incredibly accurate everywhere bear market, but since Bitcoin turned bullish, the tool has been less effective for calling tops or bottoms. Will the previously flawless predictor of trend change fail to call a reversal in Ethereum, just like the very first cryptocurrency?
A perfected TD 9 sell setup has appeared at the recent daily high | Source: ETHUSD on TradingView.com
Could the once flawless sales install fail again, as with Bitcoin?
On daily time frames, the TD sequential indicator is lit with a “9” sales arrangement. After a specific string of candles forms an upward trend, the “9” appears to indicate that a reversal is likely. However, it may continue, which will result in a countdown to “13” – which says the trend should be completely exhausted by that point.
The indicator’s creator, Thomas Demark, has a reputation for mastering the timing of markets, but has been completely wrong lately when he predicted Bitcoin would reverse.
Demark’s “model” perfectly predicted the “tops” of 2017 and 2019 along with December 2018 bear market floor, but when it told him recently that the trend of the major cryptocurrency was to disappear in December, not only was it an incorrect call, but Bitcoin has since added another $ 10,000 to its price.
Ethereum is at a similar point in its rise as Bitcoin was before that now-proven false call, and when the momentum is so strong, the selling setup is ignored and used instead to lure sellers in to squeeze the price higher.
Only time will tell if the set-up to sell was the right call this time, but with the perfected “9” on today’s daily ETHUSD candle, we can get confirmation sooner rather than later in which direction the altcoin will select.
Featured image from Deposit Photos, Charts from TradingView.com