ETH/BTC ready for continuation of its cycle?

The last few months have been all about the rises, falls and anything in between of BTC. But what about the altcoin space? Let’s take a look at the mother of all altcoins, ETH. What does the chart tell us, and how does it perform against the king of crypto, BTC?

In order to get a good view of the performance of ETH, one must deem it mandatory to look at the BTC pair first before anticipating its USD value. The reason for this is extremely simple. Every crypto project in space is heavily pegged to BTC. 

Whenever BTC is volatile, altcoins struggle. When BTC trades more quietly, altcoins tend to find space to develop. So, while the USD pair may go up at any given moment, if the underlying BTC pair is not looking great, its gains will be limited significantly.

So let’s take a look at ETH. If we take a look at the chart below, then we can see the significant rise of ETH in the Spring of 2021 stems from the cause it has been building in the 2 years prior to this.

 In the period between late 2019 and early 2021, ETH has been trading sideways. Naturally after such a long time of building up a cause, once this range breaks either up or downwards, large followthrough can be expected. And so it did, as once broken ETH rose by 400%, and even hitting new all time highs on its USD equivalent. 

Eventually ETH, like BTC found its high and has been in a corrective phase ever since. So why was the top of ETH as it was? The answer lies in its BTC chart, as we can see on the figure above, price found its resistance point at its previous significant high before entering its accumulation phase in 2019.

Ever since then we have once again entered a state of correction, which on the BTC pair is a sideways one, marking a series of higher lows, establishing a valid upwards sloping trendline which can be used to construct a channel. The most interesting part of all is that its most recent low does not only print a perfect touch of the trendline, but also gives us the highest volume node of this range, which has now lasted a year.

After a 2 year long accumulation range, we saw significant upside. After hitting resistance, it has yet entered another state of (re) accumulation. As long as this holds up, we can draw education from past price action and project it onto the future with extreme technical precision. History doesn’t repeat itself, but it does.

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