Preparing for Alt Season/ETHUSD Technical Analysis
(Please zoom out to 2017 to see full chart)
With bitcoin blasting past its all time high, the market is looking ripe with opportunity at every corner, especially for alt coins..
Even Ethereum's USD value is at HALF of its all time value and in this lies the secret to the next year or so in the market in my opinion.
Why?
Take a look at the ETHBTC chart...
Before going deep into the technical analysis of this chart lets look at some key contributing factors.
If our goal is to create a new ATH for Ethereum, then as bitcoin continues to rise so will the value of Ethereum.
Lets say ETHBTC stays at a constant value of 0.028, as it is now, bitcoin needs to reach 50k in order for Ethereum to be "priced in" to its ATH value.
Etherium gets pumped when bitcoin rises AND when bitcoin ranges...
The 50k target is reasonable, but the strength in this theory shows that if there are multiple roads for ETHUSD to print a new ATH.
The important key note for now?..
The likelihood of ETHUSD to print a new ATH being substantial almost guarantees alt season..
Now let's take a look at some of the technical analysis and price action that supports this theory and some that may contradict it..
Right now, ETHBTC, is an incredibly strong accumulation range.
Not only does this accumulation range look strong, it is currently in a minor uptrend.
Without going to deep into the analysis of our most recent accumulation pattern, my main note will be that 0.025 now exists as a strong point of support and an INCREDIBLY good looking opportunity/high risk to reward trade for anyone bullish.
For this reason I think we may never see 0.025 again more than once.
There is not much price volume above this accumulation zone. If you've been in the crypto space as long as I have you know after bitcoin pumps, bitcoin usually ranges, while money flows into the altcoin market.
If we break out of this accumulation we have very clear and reasonable targets without much sell pressure and with almost guaranteed momentum coming from bitcoin.
On the less optimistic side, lets take a few notes to control our FOMO just a bit..
If bitcoin double tops, prints an ugly daily today, and goes back below 15k, we can expect to see more accumulation on ETHBTC. (I find the likelihood of bitcoin returning below 15k very unlikely, less likely than it reaching 50k...)
We would also expect to see ETHUSD value drop significantly, more than BTCUSD. This however does NOT mean that ETHBTC cant pump still after its accumulation phase.
Before 2017, we accumulated right underneath our current accumulation zone. Normally this is an incredibly bullish sign, showing that accumulation is now happening at higher price values, but this could be just Bitcoin support while it pumps, before we fall back down to the previous accumulation zone.
Regardless the old accumulation zone is at 0.015. My plan if worse comes to worse? Accumulate all the way down to 0.015. Even with such PA it would still be an incredibly prime opportunity..
With ETH's new staking protocol and the market looking like a loaded spring, 2021 may be an INCREDIBLY interesting year for altcoins and the nature/value of ETH.
Cheers to what looks like an incredibly healthy market fellas!!
With bitcoin blasting past its all time high, the market is looking ripe with opportunity at every corner, especially for alt coins..
Even Ethereum's USD value is at HALF of its all time value and in this lies the secret to the next year or so in the market in my opinion.
Why?
Take a look at the ETHBTC chart...
Before going deep into the technical analysis of this chart lets look at some key contributing factors.
If our goal is to create a new ATH for Ethereum, then as bitcoin continues to rise so will the value of Ethereum.
Lets say ETHBTC stays at a constant value of 0.028, as it is now, bitcoin needs to reach 50k in order for Ethereum to be "priced in" to its ATH value.
Etherium gets pumped when bitcoin rises AND when bitcoin ranges...
The 50k target is reasonable, but the strength in this theory shows that if there are multiple roads for ETHUSD to print a new ATH.
The important key note for now?..
The likelihood of ETHUSD to print a new ATH being substantial almost guarantees alt season..
Now let's take a look at some of the technical analysis and price action that supports this theory and some that may contradict it..
Right now, ETHBTC, is an incredibly strong accumulation range.
Not only does this accumulation range look strong, it is currently in a minor uptrend.
Without going to deep into the analysis of our most recent accumulation pattern, my main note will be that 0.025 now exists as a strong point of support and an INCREDIBLY good looking opportunity/high risk to reward trade for anyone bullish.
For this reason I think we may never see 0.025 again more than once.
There is not much price volume above this accumulation zone. If you've been in the crypto space as long as I have you know after bitcoin pumps, bitcoin usually ranges, while money flows into the altcoin market.
If we break out of this accumulation we have very clear and reasonable targets without much sell pressure and with almost guaranteed momentum coming from bitcoin.
On the less optimistic side, lets take a few notes to control our FOMO just a bit..
If bitcoin double tops, prints an ugly daily today, and goes back below 15k, we can expect to see more accumulation on ETHBTC. (I find the likelihood of bitcoin returning below 15k very unlikely, less likely than it reaching 50k...)
We would also expect to see ETHUSD value drop significantly, more than BTCUSD. This however does NOT mean that ETHBTC cant pump still after its accumulation phase.
Before 2017, we accumulated right underneath our current accumulation zone. Normally this is an incredibly bullish sign, showing that accumulation is now happening at higher price values, but this could be just Bitcoin support while it pumps, before we fall back down to the previous accumulation zone.
Regardless the old accumulation zone is at 0.015. My plan if worse comes to worse? Accumulate all the way down to 0.015. Even with such PA it would still be an incredibly prime opportunity..
With ETH's new staking protocol and the market looking like a loaded spring, 2021 may be an INCREDIBLY interesting year for altcoins and the nature/value of ETH.
Cheers to what looks like an incredibly healthy market fellas!!
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