Ethereum, one of the largest altcoins, has seen waves of investment growth throughout the year. Likewise, expectations for a huge return on investment grew. However, is there a huge ROI to be expected in the current market environment? Could Ethereum touch its ATH again?
Is Ethereum on the Rise?
Popular analyst Benjamin Cowen examined daily and weekly charts to discuss long-term movements in the ETH exchange rate. On the daily chart, the coin is up 6% to $ 2,264, while on the weekly chart, the coin is up 17%. This is the first week in almost a month that ETH has closed on a positive note. However, people shouldn’t expect a new ATH this summer.
For Ethereum to participate in a bull run like it did some time ago, Bitcoin needs to rise above its 20-week SMA and also get closer to its ATH. However, at the moment, Bitcoin is still below the 20-week simple moving average, which is not a good sign for those looking forward to a bull market. If BTC drops from here, Ethereum will follow suit.
When should you invest?
Right now isn’t necessarily a bad time to invest. Even if the market is clearly not green at the moment, this does not mean that the coin cannot grow. In fact, Ethereum looks positive to close above its 20-week SMA.
In addition, the ETH / BTC pair is currently in a falling wedge. Thus, in order to introduce a new ETH / BTC ATH estimate, the price indicator must break the downtrend. When this valuation is at least 24-25% above its current value, Ethereum will be listed at $ 3,000, which could trigger a possible bullish move. Benjamin Cowen added:
“I am going to look at this to remain relatively cautious until BTC sets weekly closes above its 20-week SMA and also confirms this as support.”
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