A widely followed crypto analyst says Ethereum and altcoins are preparing for an upward move as ETH shows the same pattern as in 2020.
In a new video update, crypto strategist Jason Pizzino tells Its 344,000 YouTube subscribers indicate that the Ethereum/Bitcoin (ETH/BTC) pair is showing a “major altcoin signal.”
However, he warns that altcoins have to fall a bit further before market sentiment turns and triggers a rally.
“ETH/BTC had a rebound in November, but again it still hasn’t broken past at least 4% levels and the key level I’m looking for for a price surplus here is 0.046 [BTC].
That will give us a price surplus to the upside, and ideally if [the 0.032 BTC] layer is not removed, over time it will also become unbalanced and that would be that important altcoin signal, when everyone who has extreme greed, the excitement and belief that these markets just won’t go down anymore.
We’re still not there yet, so I don’t think it’s too crazy to think that we’ll at least see further consolidation, but until that happens, you’re probably not going to get that same extreme excitement to the upside.”
According to the trader, ETH/BTC reflects the same pattern as in 2020 before it started.
“It’s similar to what happened in December 2020 and what followed December 2020 is your huge January bar: big, big volume, big reversal…
That’s why we look back to January [2021]. YYou start to see the volume increase early on and just come back out of nowhere. You can see it [December 27th, 2020] it started recording and [on] January 3 [2021], [a] nice big move. Third and fourth [of January], [ETH/BTC] starts to break those highs and then consolidate above those support levels.
You can see they’re around 3% and then it started moving again. Sure, it dropped again, but that gives you the surplus you’re looking for, meaning there are more buyers for a longer period of time and they keep the price going up. That’s exactly what we need to see, and we haven’t seen it yet with the ETH/BTC chart.”
ETH/BTC yes valued at 0.0342 BTC ($3,264.68) at the time of writing.
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Generated image: Midjourney
