Ethereum (ETH) hasn’t done too hot over recent months. Ever since Bitcoin (BTC) started rallying earlier this year, altcoins across the board have suffered, falling against the market leader.
However, ETH is purportedly in the thick of a buy zone. Simultaneously, a number of analysts have claimed that the second-largest cryptocurrency is ready to head higher in the coming weeks and months. This confluence may present a solid buying opportunity.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
Ethereum In Key Buy Zone
If you’ve followed financial markets at all, you know that the 200-day moving average is important. This level, according to analysts across industries and time, is indicative of an asset’s trend. And according to a new analyst, it may be a viable way to determine when it is time to buy a cryptocurrency.
Bitcoin trader BitDealer recently noted that ETH is likely in a medium-term to long-term buying zone when it is 10 points below its 200-day moving average. Right now, Ethereum is in that zone, trading at $181.2 — some $30 lower than the technical level, which currently sits at $213.0.
Marked on the charts:When BTC price is 100pts or more below the daily 200MAWhen ETH price is 10pts or more below the daily 200MA
Simple but pretty interesting. Looks like good places to buy BTC & ETH. pic.twitter.com/9RjvUy0hf6
— ₿itDealer (@Bitdealer_) November 3, 2019
Related Reading: Analyst: Bitcoin May See 30% Rally to $12,000 as Price Breaks Out
Upward Momentum Building
While ETH may be in a good buying zone, do the technicals or fundamentals support price appreciation?
According to some analysts, decidedly so.
Brave New Coin’s Josh Olszewicz recently noted that the cryptocurrency’s recent consolidation in the $180 price region has allowed ETH to print a bullish chart pattern, an ascending triangle — a signal that often implies bullish trend continuation for the asset in question. He notes that a measured move for this triangle would be a 15% rally to $215 over the coming weeks.
asc tri pic.twitter.com/QgcPx1c7ZC
— Josh Olszewicz (@CarpeNoctom) October 29, 2019
This came shortly after Olszewicz argued that he expects ETH’s price to see an edge-to-edge Ichimoku Cloud move from $183 to $260 — a 40% move higher. While this seems crazy, the recent move has made the charts of many cryptocurrencies bullish once again.
On the fundamental side of the cryptocurrency, Ethereum’s decentralized finance (DeFi) ecosystem has continued to swell, recently establishing a new all-time high in terms of how much ETH is locked up in DeFi applications. Also, Ethereum’s next system-wide upgrade, Istanbul, will be activating on the mainnet likely during the week of December 4th.
Related Reading: Research Firm: Bitcoin Price Bottomed at $7,300, Recovery Possible
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Author: Nick Chong