A prominent crypto market analyst has indicated that Ethereum (ETH) may be on the brink of a rally following a bullish signal on its high timeframe chart. The analyst, Ali Martinez, informed his followers on a social media platform that ETH has broken out of an ascending triangle pattern on its weekly chart, aiming for a target of $3,400 despite short-term volatility. Ascending triangles are typically interpreted as bullish formations, characterized by two or more equal highs and a series of higher lows.
Martinez also mentioned that the Tom DeMark (TD) Sequential indicator has recently provided a buy signal for Dogecoin (DOGE), the market’s first meme token. This indicator is used by investors to predict potential trend reversals based on the closing prices of the previous 13 bars or candles. He suggested that DOGE has a significant chance of rising to $0.100 or higher as long as it maintains support at $0.074.
Focusing on Bitcoin (BTC), the leading cryptocurrency, Martinez discussed the Bitcoin Miner Position Index (MPI), which reportedly rose to 9.43 on January 12. He warned that this indicates miners are moving more BTC than usual, signaling potential selling pressure. Despite the recent BTC price correction, he cautioned that further miner selling could drive prices lower.
The MPI is a metric that provides insight into whether BTC miners are selling or holding their coins. 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.