A widely respected cryptocurrency analyst has said that Ethereum and altcoins are bracing for an uptrend as ETH prints the same pattern as in 2020.
In a new video update, cryptocurrency strategist Jason Pizzino told his 344,000 YouTube subscribers that the Ethereum/Bitcoin (ETH/BTC) pair is sending “major altcoin signals.”
However, he warned that altcoins still need to fall a little further before market sentiment turns around and triggers a rebound.
“In November, ETH/BTC rebounded, but still not above the minimum 4% level, where we are observing an excess balance in the price, the key level being 0.046 (BTC).
This will give us an overbalance in the price and ideally if we don’t remove the (0.032 BTC) low, we will overbalance over time and this will be a major altcoin signal for everyone to take to extremes. It was greed, excitement, and the belief that the market would never crash again.
We’re not there yet, so I don’t think it’s too crazy to think that there will at least be more integration. But until that happens, we probably won’t get that extreme upside.”
According to traders, ETH/BTC is reflecting the same pattern as in 2020 before the rally.
“This is similar to what happened in December 2020 and what followed in December 2020 is a huge January bar: big, big volume, big reversal…
So we look back on January 2021. whyYou start to see that volume actually increase initially and then suddenly come back. As you can see (December 27, 2020) it started to trend upward and (January 3, 2021) made (a) nice big move. In the third and fourth of January, (ETH/BTC) starts breaking the highs and consolidating above that support level.
It stayed at about 3% and then started moving again. It’s definitely down again, but it gives you the overbalance you’re looking for. That means more buyers are holding on for the long term. The price goes up. This is what we need to see, and we haven’t seen it on the ETH/BTC chart yet.”
As of this writing, ETH/BTC is worth 0.0342 BTC ($3,264.68).
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