Ethereum, one of the largest altcoins, has seen soaring investments over the year. Similarly, expectations for a huge ROI have risen as well. However, should you expect a high ROI given current market conditions? Can Ethereum actually touch its ATH again?
Ethereum on the Bull Run?
Popular analyst Benjamin Cowen examined the daily and weekly charts to discuss long-term changes for ETH. On the daily chart the coin was up 6% at $ 2264 and on the weekly chart the coin was up a strong 17%. This is the first week in almost a month that ETH closed positively. However, you shouldn’t expect a new ATH this summer.
In order for Ethereum to start a bull run like it did some time ago, Bitcoin must go beyond the 20-week SMA and get closer to its ATH. For now, however, Bitcoin is still below the 20-week Simple Moving Average, which isn’t a good sign for those looking forward to a bull market. If BTC falls from here, Ethereum will follow suit.
When should you invest?
Now is not necessarily a bad time to invest. Even if the market isn’t explicitly green right now, that doesn’t mean the coin can’t go up. In fact, Ethereum looks positive when it closes above the 20-week SMA.
In addition, the ETH / BTC pair is currently in a downward wedge. So in order to enter a new ETH / BTC rating ATH, the price indicator has to break the downtrend. If this rating is at least 24-25% above its current value, Ethereum would be placed at $ 3000, which could mark the start of a possible bull run. Benjamin Cowen added:
“I will only look at this by remaining relatively cautious until BTC sets weekly closing prices above the 20-week SMA and also confirms this as support.”
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