There is a case to be made for an impending 132% run-up in Ethereum, based on a historical bull cross in the MACD that has appeared on the weekly ETHBTC chart. Tom Lee of the crypto analyst set puts it this way: Ethereum is still undervalued and should be viewed as digital land given its long-term standing.
Recent MACD Bull Cross Points to Upside
The technicals back up the sentiment. Lark Davis, host of the channel, notes that two weeks ago the weekly chart displayed a rare Ethereum MACD bull cross. It is a pattern that has been known to precede a big move; in fact, the last instance was followed by a 132% jump in the ETH/BTC ratio. Technical traders keep a close eye on the Moving Average Convergence Divergence over the weekly period for any hint of momentum or a change in trend.
With the broader market watching where capital flows between Bitcoin and altcoins, the signal is one more reason to think an explosive rally could be at hand. The current market formations are much like those in place before Ethereum’s earlier surges, leaving those who did not participate in them at something of a fork in the road.
Tom Lee: Ethereum Is the Digital World’s Foundation
In a recent appearance on Lark Davis’ channel, Tom Lee put forward the case that Ethereum is undervalued by as much as $300 billion. The well-known crypto analyst sees it as a cornerstone of the digital economy, likening the asset to “land” in a virtual sense; his view is that as all activity moves on-chain, Ethereum’s long-term standing is assured.
There are some in the crypto community who have not been overly fond of the asset lately, but Lee is unconvinced by that sentiment. He points to a bull cross in the MACD as a likely catalyst for investors to take notice once more. In fact, with the technical and fundamental picture so compelling, this market dynamic offers a key inflection point for anyone who has yet to find an opening to get in, one that could see Ethereum outperform.
Market Implications and Investor Sentiment
With sentiment on ETH being a mixed bag and some investors writing off its prospects, the timing of the Ethereum MACD bull cross is notable. Yet one need only look at the historical record and what experts are saying to see that Ethereum could be set for considerable gains. In fact, the technicals bear a striking resemblance to previous cycles in which ETH put on a show of outperformance that left many unprepared.
Market participants are now considering whether to put more capital into Ethereum as they take in what this signal means. There is the possibility of fresh momentum from the alignment of a bullish fundamental view and the technical picture, not least because in today’s changing digital environment, investors are after assets that offer both utility and room to grow.
Source — Lark Davis: https://www.youtube.com/watch?v=J6JrVL-_YWk