When price makes lower lows but MACD line makes higher lows this is the divergence I am referring to (as circled in orange). This has only happened 3 times before and each time a massive rally has followed in the ETH/BTC ratio. Based on past moves, the rally could return between 400% and 2200% (from early Sept. lows) in as little as 55-166 days. I believe the rally will be more similar to the first two instances of divergence as the third instance did not take us to new highs and occurs within the wake of the second instance of divergence.
between sep 2018 and dec 2018 there was also a divergence but it didn't pan out
SwannyMatt
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@Marco_Ramos, The MACD line low after 12 Sep 2018 is a higher low on 15 Oct 2018 but price is not. Then the MACD line low on 11 Dec 2018 is a lower low from Oct.
SwannyMatt
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@Marco_Ramos, Also if one were to consider the 15 Oct MACD line low an outlier/invalid, the MACD line still did not provide further confirmation by going positive, it stayed negative.
SwannyMatt
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@SwannyMatt, I got mixed up in parent comment sorry, it did go positive.