A closely followed crypto market analyst has indicated that Ethereum (ETH) may be on the verge of a rally after showing a bullish signal on the high timeframe chart.
Analyst’s Commentary on ETH
Senior analyst Ali Martinez informed his followers on social media platform X that ETH has broken out of an ascending triangle on the weekly chart and continues to target $3,400 despite short-term volatility. An ascending triangle formation is a technical analysis pattern typically involving two or more equal highs and a series of higher lows. It is often interpreted as a bullish formation.
Ali Martinez also revealed that the Tom DeMark (TD) Sequential indicator recently provided a buy signal for the market’s first meme token, Dogecoin (DOGE). The TD Sequential indicator is used by investors to predict potential trend reversals based on the closing prices of the previous 13 bars or candles. Ali Martinez stated:
As long as the $0.074 support cluster continues to hold, DOGE has a great chance of rising to $0.100 or higher!
Critical Formation in Bitcoin
Ali Martinez later discussed the leading cryptocurrency, Bitcoin (BTC), stating that the BTC Miner Position Index (MPI) rose to 9.43 on January 12, indicating:
This suggests miners are moving more BTC than usual, signaling potential sales. Be cautious despite the recent BTC price correction. More miner sales could push prices further down!
The MPI is a measure that provides insight into whether BTC miners are selling or holding their cryptocurrencies. According to the crypto analytics firm CryptoQuant, it is calculated by dividing the dollar value of all miners’ outflows by the 365-day moving average.
