In just 48 hours, Ethereum rose over 50% from last night’s night high, from $ 770 to around $ 1140. The massive Sunday candle was the prelude to a sell signal that formed in the daily timeframe.
Was that recent surge the final boost in Ethereum’s bull trend? Or will this sell signal fail as with Bitcoin and the top ranked altcoin rise to a new all-time high?
Happy New Year: Ethereum Up More Than 50% In The First Week To 2021
While it’s hard to argue that 2020 was the year of Bitcoin, Ethereum significantly outperformed the top cryptocurrency. With just four days in the new year, 2021 already looks like an encore will come.
For the 30% ROI Bitcoin has to show for the year so far, Ethereum grew by more than 50% from the start of the year to last night’s high.
Related reading | Transaction fees for Ethereum rise in the second round of the DeFi season
The higher daily high of the USD trading pair has resulted in a perfected sell build using the TD Sequential indicator created by Market Timing Assistant Thomas Demark.
The tool had proven incredibly accurate across the bear market, but since Bitcoin went bullish, the tool had been less effective at calling up tops or bottoms. Won’t the formerly flawless trend change predictor not be able to call for a reversal in Ethereum, just as it did with the very first cryptocurrency?
A perfected TD 9 sales setup is at its latest daily high | published source: ETHUSD on TradingView.com
Could the once error-free sales setup fail again, as it did with Bitcoin?
In the daily time frame, the TD Sequential indicator lights up with a sales setup of “9”. After a certain series of candles that form an uptrend, the “9” appears and signals that a reversal is likely. However, things can continue, resulting in a countdown to “13” – which is to say the trend should be fully exhausted by this point.
The indicator’s creator, Thomas Demark, has a reputation for mastering the timing of the markets but has been completely mistaken recently when he predicted that Bitcoin would reverse.
Demark’s “model” perfectly predicted the “spikes” in 2017 and 2019, as well as the bottom of the bear market in December 2018, but when it recently announced that the top crypto asset trend would end in December, it wasn’t just a false call , but also a false call Bitcoin has since added another $ 10,000 to its price.
Related reading | Analyst: Post Bitcoin, traditional finances are pouring into DeFi, not Ethereum
Ethereum is at a similar point in its boom as Bitcoin was prior to this now proven false call. When the momentum is this strong, the sales setup is ignored and used instead to attract sellers to push the price higher.
Only time will tell if the setup for sale was the right call this time around, but with the perfected “9” on today’s daily ETHUSD candle, sooner or later we could get confirmation of which direction the altcoin will go.
Featured image from deposit photos, charts from TradingView.com