Ethereum has shown some heavy bullish momentum, recently leading Bitcoin and showing signs of an alts season. Over the last 90 days, Ethereum has soared by almost 48%. This spectacular increase has far eclipsed that of Bitcoin, which rose 31% over the same period. Naturally, investors and analysts are all abuzz over this surge. It’s ignited some pretty interesting debate about where Ethereum and the rest of the altcoin market goes next.
The Ethereum cryptocurrency has managed to close consistently above the 50% Fibonacci retracement, a key technical indicator. Combined with several other positive signals, this development made it a strengthening bullish outlook for Ethereum.
Technical Indicators Point to Continued Growth
Ethereum’s recent bull run has been characterized by some major technical achievements. In the process, the cryptocurrency has closed above the 50% Fibonacci retracement level, with its latest close at $2,746. This Fibonacci level retraces from the 52-week high of $4,107 down to the YTD low of $1,385. This movement shows a very positive rebound in the market.
Ethereum’s Moving Average Convergence/Divergence (MACD) indicator crossed on the daily chart. This crossover has sent a buy signal and cemented some of this bullish sentiment. Ethereum’s Relative Strength Index (RSI) is sitting at 46. This is a sign that the previously bearish momentum has run its course, and that there’s still a lot of room to push the price upward.
Ethereum, too, is celebrating a bullish breakout from its long-standing sideways trading range, most recently ending with a closing price of $2,816. This breakout is a very positive sign that the cryptocurrency is set for even greater gains. The weekly Moving Average Convergence/Divergence (MACD) indicator has just triggered a bullish crossover above the signal line. This smart ownership-by-the-byte change is just the latest encouraging sign for investors.
Altcoin Season on the Horizon?
Ethereum has taken off like crazy versus Bitcoin. Some view this increase as the first signal that an altcoin season is approaching. Historically, during such periods altcoins have outperformed Bitcoin, pulling more investor interest and capital along with it. Ethereum has had a strong run lately and has led Bitcoin in percentage appreciation over the past 90 days. This Annual Beach Report trend is a testament to that theory.
The CoinMarketCap Altcoin Season Index sits at 32, meaning we’re nearing the end of BTC’s dominance. This is a huge increase from the 17 logged on May 30th. A reading of 75 or above typically indicates the start of an altcoin season. All the new high trend we see now is a good signal of the altcoin market strength.
Analysts discuss Ethereum breakout rally Target potential is up at $3,525—eth 78.6% Fibonacci retracement level. Veteran analyst Peter Brandt has seen an upside case for Ethereum. In terms of positive signs, he points to a range breakout as particularly strong bullish news. These industry insiders add to the credibility of the bullish outlook for Ethereum.
Potential Risks and Support Levels
Yet, even in the face of all these overwhelmingly positive signals, risks still persist. If Ethereum breaks below the 50% Fibonacci level, we could be on for a deeper correction. In such a case, the invalidation would be down to 200-day Exponential Moving Average (EMA) at $2,470. This fourth level plays an important role as a support. If it doesn’t hold, we may be in for bigger drops.
The blue, rising 50-day Exponential Moving Average (EMA) is about to cross over the slower moving 200-day EMA. That would likely result in the creation of a golden cross—an extremely bullish indicator! Traders commonly see this bearish technical pattern as a bullish sign. It means that the short-term moving average is pushing above the long-term moving average, which tends to attract new buyers to the market.
