As Bitcoin has stalled, so too has the second-largest cryptocurrency, Ethereum (ETH). The popular altcoin has collapsed by some 50% from the year-to-date peak seen earlier this year just like Bitcoin, being crushed under the weight of a copious amount of PlusToken reserve liquidations and other sources of selling pressure hurting bulls.
Despite the strong downtrend ETH has formed, a prominent trader suggests that Ethereum may end the year on a high note, citing technical trends that imply a Santa Claus rally is entirely plausible.
Ethereum Ready to Burst Higher?
According to Michael van de Poppe, a CoinTelegraph contributor and a prominent cryptocurrency trader, Ethereum may be preparing to make a run to $175 according to “very basic technical analysis.” He drew attention to a double bottom structure that is forming, which can be corroborated by a breakout of a falling wedge and the fact that a key support held.
ETH hitting $175 from current levels would require it to rally by 16%.
This bullish technical outlook comes hot on the heels of a series of positive events for the Ethereum ecosystem as a whole.
Per previous reports from NewsBTC, RealT, a U.S.-based global real estate platform working with Ethereum and blockchains, just sold the “first property ever to be tokenized on Ethereum.”
RealT, which sold the 9943 Marlowe RealToken (which represents the ownership of a Detroit home worth around $60,000), claims that this sale marked a number of “firsts” for the Ethereum ecosystem: these being the first tokenized real estate property, the first security token integrated into DeFi, and the first real estate asset tradable inside of Uniswap exchange and through the actual RealT website.
In related news, decentralized finance as an industry has been absolutely exploding, with users being attracted by derivatives and the chance to access financial services in a decentralized manner.
All Dependant on Bitcoin
While the technicals and fundamentals may support an ETH rally, its future is currently dependent on Bitcoin, as the leading cryptocurrency dictates the directionality of the rest of the market.
And unfortunately, it appears that bears are in control, meaning that both Bitcoin and Ethereum could fall in tandem.
On Nov. 14, popular cryptocurrency trader “Salsa” remarked that Bitcoin’s one-day chart “doesn’t look pretty,” drawing attention to the fact that BTC has turned the $7,300 support into resistance, a support-resistance flip that implies bears remain well in control.
Another analyst has echoed this, recently posting the chart below via Twitter to illustrate that bulls are in no position to gain an advantage over bears. On-balance Volume, an indicator meant to relate price to volumes, has formed a bearish pennant on the six-hour BTC chart, implying bearish price action is forming, while the Accumulation/Distribution indicator largely implies that distribution is taking place.