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Ethereum started off 2020 as bullish as can be, outperforming BTC and other crypto assets by a large margin.
The top altcoin in the crypto market may soon make a massive 95% move against Bitcoin, according to one analyst, but the direction of that move is still up in the air, although they’re leaning heavily toward a chart pattern formation resolving to the downside.
Ethereum Forms Massive Symmetrical Triangle with 95% Target Against BTC
Following the boom in the decentralized finance movement in late 2019 and early 2020, all signs pointed to Ethereum going on a powerful rally.
The altcoin kicked off the year with an over 100% rally, doubling in price and helping to lead the rest of the market toward what are now in hindsight the year’s highs.
Related Reading | Ethereum Sets Record for Most Bullish String of Weekly Price Action Yet
Ethereum and other altcoins not only broke out of their downtrends on their USD pairs, but they also saw a breakout against Bitcoin on BTC pairs.
The latest price action has caused Ethereum to form a massive, multi-year symmetrical triangle on the ETH//BTC trading pair, which based on the formation’s measure rule would have a 95% rise or drop for a target.
The triangle is currently reaching its apex, suggesting this powerful breakout is imminent. However, symmetrical triangles break up almost as often as they break downward.
$ETHBTC is nearing the apex of a massive symmetrical triangle. A 95% move is expecting following confirmation. As it stands I think that breaking down is the most likely due to the bear channels that have started to develop. pic.twitter.com/Dwzut6AIlu
— Tyler Coates (@Sawcruhteez) March 19, 2020
The crypto analyst who spotted this massive formation and potential move believes that the latest price action suggests that the formation is more likely than not to break down.
According to the trader, Ethereum has been trading within a bear channel on the ETH/BTC pair for an extended period, indicating that down is the probable direction.
Is the Altcoin Market About to Tank Against Bitcoin?
Ethereum and other large-cap altcoins often are leading indicators for the rest of the crypto market, and in particular, the altcoins space.
The number two cryptocurrency by market cap showing signs of falling against Bitcoin could signal a worse drop across the wider altcoin market.
The total altcoin market cap against BTC is also in a multi-year formation, however, this pattern looks to be more descending in nature and not symmetrical like Ethereum.
Related Reading | Altcoin Market Forms Crypto’s Most Dangerous Pattern
Descending triangles in the crypto market have in the past been notably deadly. It’s the same pattern that sent Bitcoin from $6,000 to $3,000, then again from $13,000 to $6,000.
Now, it’s appearing in the altcoin market, and it could cause the assets to be decimated by Bitcoin dominance in the days ahead.
