It seems that Ethereum (ETH), after about five months of bottom-searching, has finally locked in a departure from that bottom. Although Ethereum has not surged all that much percentage-wise during January (although it has outperformed Bitcoin (BTC)), the levels it is breaking, along with the general bullish outlook across crypto markets, has us declaring a HTF turnaround for 2020.

Starting with the weekly ETH/Bitcoin chart, we first highlight the complete destruction of the 21 EMA. This is a very important level on the ETH chart, and has held almost unbroken since June of 2018. This week’s move has broken the level on strength, and if the week closes in such a profile, we can safely assume that Ethereum is entered a HTF uptrend.

21 EMA shattered -- but week not overETH chart by TradingView

Moving to the daily ETH/Bitcoin chart, we see that RSI is now well into overbought territory. We are likely to see a pullback soon, although this doesn’t seem like it will impact the MTF uptrend one bit.

Strong but overboughtETH chart by TradingView

A likely sell target here would be ₿0.023, or the chart’s “capitulation line”, where Ethereum dropped back into 2017 prices this year. No matter how bullish the weekly chart is, the daily cannot keep this up forever – some consolidation will be needed.

Finally, to the ETH/Dollar daily, we see a similar picture: a likely sell target, at $220, looms just above the current price. Again, the RSI is overbought and begging for a period of calm. However, we note strength even here: we see no bearish divergence on the recent price tops, which is a very good sign for the MTF trend.

Strong but overboughtETH chart by TradingView

The histogram is pointing straight up as well, although it would be quite something to not see a bear divergence on the upcoming price top. Overall, we can also note that volume has not exactly been pouring in so far in 2020, even during the price rises. This is perhaps enticing, pointing to all the absent, potential buyers that have not even come in yet.

Ethereum is finally looking strong after an unforgiving 2019. As with Bitcoin, we can now consider a 2020 uptrend likely.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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