A popular crypto trader says that a key indicator is now flashing bullish for the smart contract platform Ethereum (ETH).
Pseudonymous analyst Dave the Wave tells his 139,800 followers on the social media platform X that the weekly Gaussian channel is signaling ETH is likely entering a bull cycle after crossing the $1,700 price level.
Gaussian channels are momentum indicators that can be used to identify price reversals.
“ETH/USD [Weekly] Gaussian gone green…”
Ethereum is trading for $1,704 at time of writing, down 1.5% in the last 24 hours.
Next, the trader weighs in on Bitcoin (BTC) using his version of the logarithmic growth curves (LGC), which attempt to forecast Bitcoin’s macro highs and lows while filtering out medium-term volatility and noise.
Looking at his chart, Bitcoin’s current price in the $27,000 range puts BTC about halfway between the upper and lower bounds of his LGC range, which he calls a “buy zone.”
“Careful of getting too clever. Yes, there may be some price consolidation in the shorter-term but sensible speculation, built on the longer-term trend and actually establishing positions, still has price in the investor’s BTC LGC buy zone.”
His chart suggests that the LGC lower bound will increase to $50,000 by 2026.
According to the trader, the lower bound of the LGC has reliably held up as Bitcoin’s market bottom. He also says that Bitcoin’s logarithmic moving average divergence (LMACD) indicator has similarly traced BTC’s market bottom. The LMACD indicator is designed to reveal changes in an asset’s trend, strength and momentum.
“The monthly MACD [LMACD = logarithmic scale] is a long-term indicator. Combined with the LGC [logarithmic growth curve] it has served BTC investors well.”
Bitcoin is trading for $27,303 at time of writing, down 1.5% in the last 24 hours.
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The post Trader Who Called May 2021 Market Meltdown Says Important Indicator Just Flashed Green for Ethereum (ETH) appeared first on The Daily Hodl.
