Ethereum Shows Positive 'DeMark' Signal, Indicating Bullish Trend: Technical Analysis
Fairlead Strategies' Founder, Katie Stockton, recently shared optimistic insights regarding Ether's (ETH) immediate future. According to Stockton, a bullish signal has emerged from DeMARK Analytics' TD (Tom Demark) Sequential indicator, which is renowned for signaling pivotal shifts in the market.
Stockton conveyed to clients that this counter-trend 'buy' signal indicates a strong likelihood of support around the $1,580 mark enduring. This assertion is backed by the successful track record of previous 'red 13' signals, further affirming the positive outlook.
DeMark indicators play a crucial role in helping market participants assess the current trend's status, potential turning points, and overall market health. They hold significant popularity within the financial community, notably on the Bloomberg terminal.
To elaborate on DeMark Analytics' daily sequential indicator, it issues a buy signal under three specific conditions, as outlined by the CMT Association. Firstly, there must be nine or more consecutive daily UTC closes below the corresponding closes from four days prior. Secondly, the highest point on any given day from the eighth day onwards must surpass the lowest point from three or more days earlier.
Once these criteria are met, traders tally the number of days with a closing price lower than the close from two days prior. When this count reaches 13, it triggers a buy signal.
The TD sequential count has produced a signal to buy, according to Fairlead Strategies.
The TD Sequential is denoted by red numbers in the chart. The latest count of 13 coincides with concerns from some analysts about Ethereum's subdued activity potentially leading to a downward trend for its native token, ether.
As for the MACD histogram, a tool utilized to assess trend strength, it is hinting at a bearish reversal with an imminent drop below zero. According to Stockton, the MACD's current positioning favors a breach of support at $1,580 and a subsequent move towards $1,350.
Nevertheless, it is anticipated that the bearish signal from the MACD will be eclipsed by the bullish TD Sequential indicator, given its accurate track record in marking short-term trend reversals earlier this year.
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