After a difficult first quarter, Ethereum is finding its groove again. The world’s second-largest cryptocurrency by market cap is up 16% this week on improved sentiment and signs of a technical reversal.
The price of ether rose 3.5% on Thursday to $435, its highest since Mar. 28.
The cryptocurrency has now gained 16% over a five-day stretch and 22% from the yearly low. Ethereum recently followed bitcoin into ‘death cross’ territory, which refers to a bearish reversal between the 50-day moving average and the 200-day moving average.
Though usually considered an ominous signal for traders, it’s worth mentioning that traditional technical tools aren’t always as reliable for cryptocurrencies. Unlike traditional financial assets, cryptos face a liquidity shortfall that results in higher than normal volatility.
Ether’s ‘death cross’ has failed to inspire a bigger selloff, with prices quickly returning above $400. An RSI of 75 is another indication that momentum is on the side of the bulls, although levels that high normally imply overbought conditions. Read more from hacked.com…
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