Few altcoins have performed better in 2020 than Ethereum. The second-ranked cryptocurrency is up well over 200% on the year, and from the Black Thursday bottom to the 2020 high, Ethereum rose over 400%.
Momentum looks to be behind bulls, however, an ominous signal just triggered on ETHUSD weekly price charts. The signal could be warning that a top is in, and Etheruem could soon lead the altcoin market off a cliff.Ethereum Rallies 400% From Black Thursday Bottom, But Weekly Sell Signal Points To End Of Uptrend
The crypto market has had one of the best starts to the year since 2017 when all-time high prices were reached. Since then, cryptocurrencies fell into a bear market that has yet to officially end by setting a new high.
Ethereum, for example, remains down almost 70% from its former peak price, even despite such bullish price action in 2020. The top-ranked altcoin was among the best investments to make with stimulus checks issued back in April. Those who did would have doubled their money and then some.
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But the recent rally, a full six months from the last peak, may soon be coming to an end.
ETHUSD Weekly TD Sequential 9 Sell Setup | Source: TradingView
TD 9 Triggers on ETHUSD Weekly, Corresponding Dollar Signal Flashes
The TD Sequential indicator has been extremely reliable throughout the history of Ethereum. It also nearly perfectly called several Bitcoin tops and bottoms.
DXY Ethereum Weekly Inverse Correlation Chart Comparison | Source: TradingViewThe above chart shows a strong inverse correlation between Ethereum and the DXY. As Ethereum topped, the DXY rebounded into a new uptrend. Could the dollar’s strength been responsible for the crypto winter all along?
Related Reading | Time To Pay Attention: Indicator Hints At 50% Or More Correction In Ethereum
And with the same signal triggered again, what does this mean for Ethereum and the rest of the altcoin market? Will Bitcoin, stocks, gold, and other markets also see an impact much like Black Thursday? The days ahead will be telling if the signal ends up confirming.
It is worth noting, however, that a 9 sell setup is “perfected” with a new high. This could imply that Ethereum has another pump left in its tank before the reversal happens. Or perhaps no reversal ever arrives, and the signal fails to confirm.
