The second-largest cryptocurrency will see over 8% growth against its top rival should the technical outlook play out.
Ethereum loses key support level as ETH price falls to two-month lows against Bitcoin
ETH/BTC dropped below its 200-day exponential moving average for the first time since March 2020, raising risks of more downside.
Ascending Triangle Points Ethereum Toward Powerful Potential Climax
The cryptocurrency market is trending bearish on the short-term, keeping Bitcoin and Ethereum prices at bay after an enormous Q1 2021 rally. But there is no telling if the bull market is officially over, or if a bounce could materialize into a larger recovery.
An ascending triangle pattern and long-term trend line could provide a clue as to what might happen next, and it just so happens to match a pattern from the last cycle that took Ether to its bull market peak.
The Ethereum Fractal That Could Keep The Bull Run Climbing
Ethereum’s recent local top set back in April around $4,400 might not have been the bull cycle peak, according to a potentially bullish structure forming with each retest of support lower.
Although the ETHUSD trading pair appears rather bearish and sentiment is at extreme fear, the altcoin is setting a higher low on daily timeframes and remains more than $1,000 more than lows set only months ago.
Related Reading | Build Base Or Bust? Bitcoin Touches Down On Parabolic Support
The structure of higher lows and rising support, capped off by the same resistance level several times, could have painted an ascending triangle pattern on the trading pair – a chart pattern that almost exactly matches a mid-cycle retracement during the last bull run.
Will the ascending triangle pattern produce similar results as last time? | Source: ETHUSD on TradingView.com
All About The Ascending Triangle Pattern
An ascending triangle is a bullish chart pattern that can either appear at the bottom of a trend as a reversal, or at the mid-point of a trend as a continuation pattern. When these bullish patterns breakdown instead, the fake out can be deadly.
But if support holds and resistance is taken, a large move to the upside occurs. An ascending triangle pattern is what put in the Bitcoin bear market bottom, and it was also the last pattern crypto traders saw before Ethereum soared from $380 to $1,400.
Related Reading | Why Bitcoin Bears Might Not Get To Buy New Lows
$380 remained a key resistance level all throughout the bear market, and a retest of the level is what sent the cryptocurrency flying to $4,400 this most recent time. The target of this structure based on the measure move would result in nearly $10,000 per ETH, but another tap of the trend line that caused the last peak, adds another $4,000 to that target.
But this is all predicated on the bottom ascending trend line holding, and an eventual break of resistance following. Without the confirmation, the pattern will be invalidated, which could result in a much steeper drop instead.
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
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Ethereum drops more than Bitcoin as China escalates crypto ban, ETH/BTC at 3-week low
The second-largest cryptocurrency falls 13.30% versus Bitcoin’s 9.38% decline as China’s move scares investors away.
Ethereum eyes $6.5K bullish target as ETH price chart paints ‘cup and handle’
The success rate for cup-and-handle patterns in forex and stock markets, on daily timeframes, are 65% and 68%, respectively, per a Harvard study.
Ethereum “Accumulation” Nears Liftoff Phase: What This Could Mean For Bitcoin
The conversation across crypto is no longer only about Bitcoin. Ethereum is the most important cryptocurrency to the ecosystem since the former’s creation, and has recently stolen the show.
On the ETH versus BTC trading pair, the recent market structure resembles an accumulation pattern moments before the liftoff phase. If the pattern is accurate, a market cap “flippening” could soon become a narrative that rivals the story of digital gold itself.
Ethereum, Bitcoin, And Disrupting Digital Finance
During the year 2020 and with the onset of the pandemic, all things digital became far more important to the global ecosystem – and no more notably than in finance.
Among the other reasons for digital assets to thrive in the 2020-forward economy, was due to the abundance of fiat value being added to the balance sheets of the US Fed. Gold in theory should thrive in such a situation, but instead the world has turned to Bitcoin and its altcoin brethren as the up and coming store of value.
As important as this changing of the guard has been for crypto overall – and the fact it could not have been done without Bitcoin – it is Ethereum that is breaking on through to the mainstream.
Related Reading | The Chart Pattern That Takes Ethereum To $10K
At a price of $50,000 per coin, corporations and institutions are looking at BTC. They are also looking at Ethereum, but it is the network’s users minting NFTs or disrupting traditional finance via DeFi that are the driving before behind the latest trend.
At under $4,000 per coin, each ETH is still priced feasibly enough that someone can afford a whole one. Buying up 32 of them, lets the wealthy earn an APY back in rewards through staking. It is regularly in the demand for everyday use in transactions as gas, and fees are almost always high forcing users to pay a hefty sum of ETH in exchange.
All of these factors combined could explain why on the ETHBTC trading pair, the asset is in a clear accumulation pattern, and why the digital gold narrative could soon turn toward a “flippening” narrative instead.
Is this Livermore “speculative chart” valid? | Source: ETHBTC on TradingView.com
Could Accumulation On The ETHBTC Pair Lead To A Flippening?
Narratives themselves can be self-fulfilling prophecies if enough believers buy into the tale. The above chart suggests that many have bought into the tale of Ethereum itself, and a wave of more could come piling in.
What the chart above also depicts is the ETHBTC trading pair in a Livermore Accumulation Cylinder that technical analysis pioneer Jesse Livermore popularized long before Ethereum was ever launched.
Related Reading | New To Ethereum? Learn To Trade With The NewsBTC Trading Course
While Ethereum is unlikely to trade higher than Bitcoin on a per coin basis, the total market cap could “flippen” if the above pattern is accurate. The market cap of ETH is more than half of BTC currently, but there are far more coins circulating than in Bitcoin.
At current issuance and market cap parity, Ethereum would need to slightly more than 2x against Bitcoin to become the top ranked cryptocurrency by market cap. Given the long stretch of over performance since the asset’s inception, the number doesn’t seem that far off now does it?
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
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Ethereum price poised for 40% rally vs. Bitcoin after breaking out of four-month range
The Ethereum blockchain native asset broke its downward sloping resistance trendline to the upside, triggering a textbook bullish outlook.
Ethereum bounces but ETH price in danger of turning $2.3K into new resistance
The Federal Reserve chairman sidelined inflation concerns, which appears to have coincided with a relief bounce for Ethereum.
Dead cat bounce? Ethereum jumps 20% while ETH inflows to exchanges soar
One key on-chain indicator provides a bearish outlook for Ethereum’s native token.
The Bearish Signal Ethereum Bulls Need To Fear
Ethereum is above $4,000 and has hit a price level that’s nearly three full times the altcoin’s previous all-time high set years earlier. But could a full year’s worth of incredible profits and ROI be potentially leading bulls right off a cliff?
Several potentially bearish signals have appeared on Ethereum price charts that could suggest the bull market is nearing its conclusion, and that a deep retracement could follow.
Ethereum Reaches $4K Resolution As Bitcoin Goes Static
Just like Bitcoin, crypto investors have almost no interest in selling their ETH – only buying it. The recent “spot driven rally” as analysts are calling it, has taken the trending altcoin to as much as $4,200 per ETH at the high.
Gas fees broke records for revenue on that day, proving to the world that the Ethereum blockchain is financial powerhouse. DeFi is still booming, with billions worth of ETH locked, and the NFT trend has only really just taken hold.
Related Reading | Bitcoin And Ethereum Bleed 10% In Violent Crypto Market Shakeout
ETH 2.0 is in progress, and a scarcity improvement – EIP-1559 – will make the asset even more valuable to hold in the long term. It, and the recent recovery on the BTC trading pair, has prompted the return of “flippening” discussion.
What could possibly go wrong for the second-ranked crypto asset encroaching on Bitcoin’s throne?
This bearish divergence and Pi cycle "top" signal doesn't look good | Source: ETHUSD on TradingView.com
The Bearish Signals That Could Surprise Crypto Bulls, End Current Cycle
Unfortunately for bulls, Ethereum is exhibiting signs that resulted in the last bear market across crypto. On weekly timeframes, there’s a massive hidden bearish divergence, just as Ethereum brushes up against diagonal resistance.
Prior to the most recent push, Philip Swift’s “Pi Cycle Top” indicator used for Bitcoin peaks triggered – just as it did during the last bull market as it came to its conclusion.
Related Reading | Here’s Where The Ethereum Rally Could Pause, According To Bitcoin Blueprint
Bitcoin reversed first, and capital flowed into altcoins boosting the BTC trading pair ratio and beginning the talk of flippening. Now, the same sort of talk is back, and once again it is alt season and the top crypto by market cap has paused its rally.
A TD "sell" setup has marked the peak of most major rallies in Ether | Source: ETHUSD on TradingView.com
Making matters worse, there’s also a TD sell setup on the weekly timeframe, which yet again was a near-flawless top sign both in 2018 and again in mid-2019.
If Bitcoin takes a dive here, and sends the ETHBTC trading pair back to former highs, the coincidences could be too many to ignore. Bulls might have had their final push in both Bitcoin and Ethereum, and what comes next is a bear phase no one is expecting
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Bitcoin And Ethereum Bleed 10% In Violent Crypto Market Shakeout
Ethereum reached highs over $4,000 today and Bitcoin made another attempt at over $59,000. Within a two-hour window, more than 10% of recent gains were wiped out sending Ether back below the key level and Bitcoin tumbling lower.
Is this a sign of a reversal in the making, or are these powerfully trending assets simply too unstoppable right now for the rally to be over?
Ethereum, Bitcoin Dive Nearly 10% In Violent Free Fall
Ethereum has had one of its most productive months yet in terms of ROI, all while Bitcoin has struggled to maintain local highs. The recent altcoin season has been especially fruitful, propelling Dogecoin to nearly a dollar and Ether to $4,000.
Related Reading | Lucky Number 7: Ethereum Breaks Total Crypto Monthly Record
While Bitcoin consolidates, these altcoins are making the cryptocurrency’s recent run look like child’s play in terms of ROI.
However, much of that ROI was just erased in a matter of minutes.
Within two hours 10% was gone from both coins | Source: ETHUSD on TradingView.com
What This Means For The Current Crypto Market Cycle
A long and nasty wick is all that remains on both BTCUSD and ETHUSD on the shortest timeframes. Currently, the daily on both crypto assets looks bearish but a bear trap ahead of a breakout isn’t out of the cards.
Crypto has been a full bull mode for some time, and a correction could also be long overdue. These assets are up hundreds if not thousands of a percent already this year, and have barely taken a breather.
Related Reading | Creator Of Flawless Top Indicator Says Bitcoin Isn’t Done, Despite Signal
Markets tend to correct when participants least expect it, and the current greed and exuberance has been the highest in years. An unexpected correction could leaves bulls gasping for air and wondering what happened.
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Here’s Where The Ethereum Rally Could Pause, According To Bitcoin Blueprint
Ethereum is ripping, now well above $4,000 per ETH and in full price discovery mode. But with no obvious resistance levels, how can anyone prepare for when the trending altcoin runs out of steam and eventually reverses?
Technical analysis indicators, as well as fundamental tools are two possibilities, however, simple mathematics could also play an important factor. Here’s how, along with a look at how the same math stopped the Bitcoin bull train in its tracks.
Crypto Market Cycles, Expectations, And Wild Analyst Targets
As much as analysts and traders can get a good read on an asset and its value, or even how price action could play out, there’s truly no predicting every aspect of cryptocurrency cycles.
Years ago before Bitcoin became a household name, analyst had been predicting $2,0000-3,000 per BTC. Yet at the height of hype, it reached nearly $20,000 per coin.
Related Reading | Lucky Number 7: Ethereum Breaks Total Crypto Monthly Record
A lot more people know what Bitcoin is now, and it enjoys a lot more brand visibility, recognition, and hype than it ever had before. Expectations for it now run to well over $300,000 per coin, yet the once trending cryptocurrency has been stuck below $60,000 for weeks now after repeated rejections.
The struggle has been largely due to capital flowing into another hotly hyped crypto asset instead: Ethereum.
Ethereum versus Bitcoin Fibonacci extensions compared | Source: ETHUSD on TradingView.com
Will Ethereum Take Pause Where Bitcoin Took A Breather?
Ethereum has not only outperformed Bitcoin in 2021, it has done so since the moment is entered the cryptocurrency market.
Like Bitcoin, Ethereum is well above its former all-time high, but hasn’t yet reached any sort of stopping point. However, that could be very close, if Ether follows the path cleared by the first ever cryptocurrency.
It was clear skies for Bitcoin until only recently once it surpassed its former peak, and it kept right on roaring not just to double its former high, but it has now tripled it and then some.
Related Reading | Creator Of Flawless Top Indicator Says Bitcoin Isn’t Done, Despite Signal
To be exact, the high reached the 3.618 Fibonacci extension – which also could end up acting as a logical place for Ethereum to pause also.
Fibonacci extensions and retracements levels are ratios based on the Fibonacci sequence – a series of numbers where the sum of the two previous numbers is the following number in the sequence.
ETHUSD just tapped the 3 Fib extension, and is headed to the 3.272 next – the first place where Bitcoin began to struggle with resistance.
The 3.618 extension still remains the local peak for BTC – is this also where the top ranked altcoin will begin to run out of steam?
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Lucky Number 7: Bitcoin, Ethereum Break Total Crypto Monthly Record
Bitcoin is back well above $50,000 and Ethereum is now over $3,000 per token. The two top crypto titans have been in full bull mode for the better part of a year now, and it has helped propel the entire crypto market cap to unprecedented heights.
Now at well over $2 trillion and counting, this most recent monthly close in the total crypto market cap marked a historic seven consecutive green monthly candles in a row. Here’s a closer look at what the long string of success could mean for the market in the days ahead.
Crypto Reaches Mass Acceptance, More Than $2 Trillion Market Cap
Sentiment changes quickly in speculative assets like crypto. It was only around two years ago that executives were calling Ethereum a double-digit “shitcoin,” and major media outlets pronounced Bitcoin dead yet again (and again).
Today, the story is very different. Nearly every powerhouse in finance is now taking a “if you can’t beat ’em, join ’em” stance with crypto and are offering exposure to Bitcoin, Ethereum, Litecoin, and others in some way.
Related Reading | Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here
Few assets aside from Dogecoin and the rare moonshot have done as well as top assets Bitcoin and Ethereum, which have soaked up most of the limelight this cycle.
Their sheer size alone is what has pushed the total crypto market cap to more than $2 trillion and climbing. And they’ve now helped the total crypto market close a record-breaking seven monthly candles in a row – the most ever.
A new record is set for longest string of green monthly candles | Source: CRYPTOCAP-TOTAL on TradingView.com
Massive Bitcoin And Ethereum Rallies Help To Break Historic Monthly Record
Layered behind the price action of the total crypto market cap the impact of both Bitcoin and Ethereum can be seen. The two combined with other altcoins like Cardano, Dogecoin, and more have made the new record of seven green monthly candles in a row possible.
Bitcoin’s enormous $1 trillion market cap alone has been the biggest contributor overall, while Ethereum clearly has some catching up to do even with a long history of over-performance compared to BTC.
Related Reading | “Exponential Decay” Of The Dollar To Benefit Crypto Long-Term
All eyes have been on Ethereum as of late to take center stage and kick off an unprecedented “alt season.” The ratio between BTC and ETH is nowhere near former highs from the last bull market, even though both have since surpassed USD highs from back then.
What this all suggests is that altcoins could take lead with the total percentage of crypto market cap they capture compared to Bitcoin. Whether this is a result of future over-performance, or a correction in Bitcoin remains to be seen.
Featured image from Deposit Photos, Charts from TradingView.com
How One Ethereum Could Soon Be Worth Half A Bitcoin
Ethereum just cleanly broke above $2,000 for the first time ever, and the altcoin has been soaring since. The milestone has revived talk about an altcoin season and even a “flippening” of Bitcoin itself.
And while that’s unlikely to happen, technical analysis of the ETHBTC pair could suggest that one full Ethereum will soon be worth nearly half a full Bitcoin. Here’s a closer look at the bottoming pattern on the trading pair that could spark the first true altcoin season since 2018.
Face That Facts: Ethereum Riding DeFi High, More Bullish Than Bitcoin
The cryptocurrency market has matured over the last several years. Bitcoin is now being widely adopted by institutions as a hedge against inflation. Ethereum, once the playground for ICOs and fly by night altcoins, has now become a hotbed for value, generated from various DeFi projects, NFTs, stablecoins, and more.
As well as Bitcoin is doing, it is Ethereum that is blossoming into an enormous ecosystem, and things are only going to be better when scalability is finally addressed properly.
Related Reading | Ethereum Bullish Retest Offers “Once-In-A-Lifetime Opportunity”
Rising fees have been a costly side effect of the DeFi explosion, but is also a sign that Ethereum is the place on the blockchain that everyone wants to be. To get in, you’ve got to pay the price of popularity.
The demand for ETH gas required for each and every transaction has helped the altcoin outperform even Bitcoin. But according to technicals, one full ETH could be worth around half a BTC, and then some.
Breaking above resistance could cause fireworks on the altcoin/BTC ratio | Source: ETHBTC on TradingView.com
How Adam And Eve Could Birth An Altcoin Season
The chart above of the ETHBTC trading pair shows a massive Adam and Eve double bottom structure. Based on the measure rule, the target of the sizable pattern would result in a move to the 0.7 range on the ratio.
That means, that each Ether token would be worth roughy 70% of a full BTC. At current Bitcoin pricing, that would send Ethereum to $42,000 per ETH.
Related Reading | Before And After: The Ethereum Fractal You Have Got To See
A more likely scenario, is that due to how crowded Bitcoin is for a trade right now, the top cryptocurrency sees a strong correction, while Ether prices continue to dominate for the time being.
The same applied measure rule would take ETH to the neckline of the "Eve" | Source: ETHBTC on TradingView.com
For those skeptical about the validity of such a claim, the above chart displaying the measure rule target of a head and shoulders pattern almost perfectly lines up with current all-time high resistance on the ratio.
The pattern confirming, would take Ethereum to the neckline of the larger Adam and Eve structure on the Bitcoin pair. A further breakout there, could result in enough upside momentum for Ethereum to achieve halfway status to Bitcoin at the very least.
A breakout of the neckline should also solidify the chances of a greater crypto market altcoin season.
Featured image from Deposit Photos, Charts from TradingView.com
Before And After: The Ethereum Fractal You Have Got To See
Ethereum price over the last couple of years has outperformed even Bitcoin’s, making it the most bullish cryptocurrency among the top three assets. But a fractal brewing in the altcoin could make for an incredibly bearish outcome if history repeats.
Here’s a closer look at the bearish cryptocurrency chart fractal potentially warning of a reversal, and the before and after you’ve got to see to believe.
Ethereum Fractal Says The Bull Market Is Finished For The Top Altcoin
Ethereum price has long been soaring right alongside Bitcoin, but since tapping above $2,000 per Ether token, the top ranked altcoins has been struggling with resistance since.
Related Reading | Ethereum Bullish Retest Offers “Once-In-A-Lifetime Opportunity”
Crypto analyst are torn whether the price action is bullish or bearish. One theory claims that the recent retest of the altcoin’s former all-time high presents a “once-in-a-life-time opportunity” for those who missed out on the initial rally.
Other analysts aren’t so sure. One crypto trader in particular has discovered a fractal in Ethereum price action, that closely resembles a more extended version of the 2017 bull market breakout.
The 2019 and 2020 price action is an extended fractal of the last bull run breakout | Source: ETHUSD on TradingView.com
The price action preceding the 2021 breakout closely resembles that of the price action during 2019 and 2020 that caused the cryptocurrency to soar to current prices. It’s what comes next, however, that must be seen to be believed.
Are Fractals Something To Fear, Or Do They Fail More Than They Follow Through?
All crypto bull rallies eventually come to an end, and bears regain control. The problem is, the fractal one crypto trader found, could indicate that is exactly what is about to happen with Ethereum price action.
After slamming into powerful resistance – then at around $1,400 per ETH – the altcoin corrected and fell into an extended, painful bear market. With the preceding price action matching the current patterns so well, albeit a much more extended version, could another bear phase soon follow?
What came next, however, was a multi-year bear market in cryptocurrencies | Source: ETHUSD on TradingView.com
Fractals, while frightening to see taking shape, often fail and have earned themselves more of a fable reputation among the crypto community than fact.
Things are very different this time around, most significantly, the amount of upside that happened in Ethereum before the peak was in.
Related Reading | Alt Season 2.0: Analyst Claims It’s “Showtime” For Ethereum
Back then, Bitcoin has also topped out, and few in the crypto space would worry that the currently ongoing bull market in the top cryptocurrency is anywhere near over.
Still, the similarities are there enough to take caution if you are holding the altcoin.
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Visa Picks Ethereum Over Facebook Libra to Settle Payments; ETH/USD Up
Ether, the de-facto settlement token of the Ethereum blockchain, rallied on Monday after global payment giant Visa became the ledger’s latest supporter.
The firm, which can handle 24,000 transactions per second, announced that it would offer users the option to settle transactions in Ethereum-based stablecoin USDC, becoming the first major payment services provider to have integrated a dollar-pegged cryptocurrency into its legacy systems.
Crypto.com joined Visa to enable the latter’s stablecoin-focused pilot program. In doing so, the crypto firm would allow Visa to engage in their physical cards, thereby gaining the privilege to settle transactions in USDC in addition to fiat currencies. The partnership would remove the need for users to go through additional asset conversions.
“The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency,” said Visa’s chief product officer Jack Forestell. “And it’s really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.”
Visa’s move followed its withdrawal from a similar stablecoin project — launched by social media giant Facebook — in 2019. The firm decided against integrating “Libra” after Mark Zuckerberg’s foray into the cryptocurrency sector met with skepticism from lawmakers and regulators alike.
ETH/USD Surges
Ethereum (aka Ether) surged by more than 5 percent in the early London session, touching an intraday high of $1,782. Part of its gains appeared due to its positive correlation with Bitcoin, the topmost cryptocurrency that also surged above a key resistance threshold of $58,000 on Monday. Meanwhile, more tailwinds for Ethereum came after the Visa news.
The Ethereum blockchain supports 74 percent of the total stablecoins available in the market, compared to only half the dollar-pegged tokens in the previous year. It transacted more than $1 trillion in stablecoins in 2020, with Tether, the most popular but controversial digital dollar, settling $580 billion worth of transfers and generating $385 billion in volumes for the Ethereum blockchain.
As usual, miners benefited the most from Ethereum’s growth as a public ledger for stablecoins and a dozen other industries, including the booming decentralized finance sector. Ethereum’s mining revenue for January 2021 was $830 million, the highest on the calendar. In turn, that raised the appeal for Ether among investors.
Visa’s involvement with a stablecoin backed by Ethereum raised the blockchain’s capability to attract more users to its platform. That partially explains its climb during the European session Monday.
Ethereum Technical Outlook
The ETH/USD now trades inside a symmetrical triangle channel, confirmed by at least two reactive highs on a downward slope trendline and two reactive lows on an upward slope trendline. Coupled with a decreasing trade volume, the pair intends to log a breakout move as it closes towards the Triangle’s apex — the point where the two trendlines converge.
For now, it appears ETH/USD would break bullish, targeting the range above $1,950-2,050. Meanwhile, an upside rejection from the Triangle’s upper trendline would mean a pullback towards the lower trendline, followed by a negative breakout move towards the $1,350-1,470 support area.
Photo by Nick Chong on Unsplash
Ethereum Bullish Retest Offers “Once-In-A-Lifetime Opportunity”
Ethereum has drawn many comparisons with early Bitcoin, and is expected to grow in value substantially and make for life-changing wealth. Those that missed out on the initial run up are in luck, however, as one crypto analyst says that the recent bullish retest presents a “once-in-a-lifetime opportunity.”
Here’s an in-depth look at the bullish retest the analyst is referencing, and what that ultimately could mean for the second ranked cryptocurrency behind Bitcoin for the long run.
Ethereum Bullish Retest Completes: What This Means For The Top Altcoin
Ethereum has been arguably more bullish than Bitcoin itself, driving a higher ROI but still nowhere near former highs on the two crypto asset’s ratio.
Related Reading | Economist: Ethereum Looks “Bullish” After Withstanding “Macro Beating”
Eventually, Ethereum should catch up to Bitcoin on the ETHBTC trading pair, causing the top ranked altcoin to outpace the first ever cryptocurrency in terms of performance.
That time could be coming, as Ethereum just completed an extremely bullish retest of its former all-time high, and held it with extreme strength. The showing by bulls withstanding a “macro beating” could provide the confidence to fuel another leg up, taking Ethereum beyond prices of $2K per coin.
This retest could be a once-in-a-lifetime opportunity to get in before it is too late | Source: ETHUSD on TradingView.com
Crypto Analyst Claims Those Who Missed Out Initially Get Another Chance
According to one crypto analyst, the bullish retest is another chance for those who missed out on the initial rally. They claim this is a “once-in-a-lifetime opportunity” for latecomers, although technically it is the second chance after missing the initial run up.
Cryptocurrencies move quickly and violently, especially when a trading range is left behind. Ethereum has been trading between $1,400 and $100 for roughly four years, and just retested the former resistance as support, and held. The important resistance flip into support is now confirmed, and typically markets then move up in a strong way.
Related Reading | Alt Season 2.0: Analyst Claims It’s “Showtime” For Ethereum
Ethereum is the second ranked cryptocurrency by market cap, only behind Bitcoin, and recently started the phases of the ETH 2.0 upgrade that should address scalability issues seen with the network recently.
Regardless of the challenges, activity on Ethereum is so high, ETH reserves on exchanges so low, and demand for Ether for gas so high, the price per coin will continue to skyrocket for the foreseeable future.
The retest of former resistance turned support, could also be the factor that finally lets the altcoin outperform Bitcoin for a period of time, bringing the ratio back toward the highs of early 2018.
Are you going to get in on this once-in-a-lifetime opportunity the analyst suggests is here?
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Ethereum Could Replace Bitcoin to Become Top Crypto Asset: Researcher
Ethereum, the second-largest blockchain network by valuation, has the potential to jump to replace Bitcoin to become the top digital asset, says Ryan Watkins of Messari.
The senior research analyst cited a flurry of catalysts that could lead to the so-called flippening event. Firstly, Ethereum’s full protocol upgrade to proof-of-stake from proof-of-work blockchain would lead to introducing a “burn mechanism.” It means the network would pre-algorithmically destroy more ETH tokens than its active supply, leading to better scarcity.
Secondly, Mr. Watkins noted that the imminent Ethereum upgrade would make its network more secure than Bitcoin. As a result, it would assume the most active blockchain’s role in the space, attracting new projects and users from the emerging decentralized finance and non-fungible token sector. Bitcoin would lack those features as it transitions to become an anti-inflation, anti-fiat store-of-value asset.
“The selling point of Bitcoin over Ethereum as a store of value asset boils down its monetary policy being very predictable and the Bitcoin blockchain being very secure,” Mr. Watkins said. “I think that with the shift to Eth2 and to Proof-of-Stake, […] Ethereum may actually potentially be more secure than Bitcoin.”
“If Ethereum is more secure and it [has] a stronger monetary policy, well, then what is the bull case for Bitcoin in this scenario,” the researcher added.
An $800bn Gap
Bitcoin, with its one trillion dollars plus market capitalization, outgrows Ethereum by roughly $800 billion. The benchmark cryptocurrency makes for about 60 percent of the entire crypto market valuation, which would mean Ethereum bulls would need to sprint instead of jogging if they ever want to flip Bitcoin.
But Ethereum 2.0 promises to bring something that Bitcoin clearly lacks: scalability and speed. The upgrade would instantly enable Ethereum’s vast network — which backs projects like Uniswap and Tether — an edge over Bitcoin, which does not support a dapp-friendly environment.
For instance, an upgraded Ethereum network expects to conduct 100,000 transactions per second compared to Bitcoin’s 2-6 transactions per second.
Ethereum & Metcalfe’s Law
Analyst Raoul Pal applies Metcalfe’s Law to show how Ethereum can flip Bitcoin.
In retrospect, the law states that “the effect of a network is proportional to the square of the number of nodes in said network.” To put it mildly, the more users a blockchain has, the higher its utility goes. In turn, higher transactions lead to more fee revenue. As a result, the token backing the network experiences a spike in its value.
Mr. Pal added that the Ethereum network resembles what Bitcoin was at its early stage. And the former is growing faster, which would have its market cap sprint ahead of the latter.
“My hunch is BTC is a perfect collateral layer but ETH might be bigger in market cap terms in 10 years,” he added. “Money and collateral is just the base layer. Everything builds on top. The store of value is collateral, the trust layer and exchange of value is bigger.”
