The 14-week RSI of Ethereum exceeds 70, indicating an acceleration in the bull market

Ethereum's (ETH) 14-week Relative Strength Index (RSI) has surpassed 70, a threshold that previously marked parabolic bull markets. This bullish signal aligns with the excitement over the upcoming Dencun upgrade for Ethereum and the potential debut of a spot ETF. The RSI is a momentum indicator developed by J. Welles Wilder to measure the speed and magnitude of price changes over a certain period (usually 14 days or weeks). The index fluctuates between 0 and 100, with readings above 70 indicating strong upward momentum. Ethereum's 14-week RSI has already exceeded this level.

 

After similar crossovers in January 2016, February and December of 2017, July and November of 2020, as well as March of this year, parabolic bull markets have unfolded.

 

This bullish signal suggests that Ethereum could potentially catch up with Bitcoin and the broader market. Since early October, Ethereum has risen by about sixty percent to $2,775 while market leaders Bitcoin and CoinDesk’s top-20 index have respectively surged one hundred percent and eighty-nine percent each.

 

Recently there are several reasons why Ethereum has been in news including its new token standard ERC-404 making its first appearance which will allow multiple wallets to own decentralized NFTS along with an impending Dencun upgrade expected to significantly reduce transaction costs. Additionally people are excited about potential debut later this year for US spot exchange-traded funds (ETFs) based on ETH.