Crypto Analyst on Ethereum Downtrend: New Lows and Capitulation Are Coming

Tony "The Bull" Severino

5 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum kicked off 2020 with an explosive rally following the rapid growth and expansion of the decentralized finance sector, which nearly doubled the value of the asset in just a couple of month’s time.

But a failure to set a higher high and a fall to new lows puts Ethereum back into a downtrend that one analyst says is going to lead to even deeper new lows and possible final capitulation before the altcoin rises once again.

ETH/USD Downtrend Continues, Capitulation and New Lows Coming

During the 2017 crypto hype bubble, it wasn’t just Bitcoin soaking up all of the limelight. Ethereum was also experiencing extreme growth in value on the heels of the initial coin offering boom.

Investors were buying up Ether feverishly and exchanging it for access to early launch phase cryptocurrencies built as ERC-20 tokens launched on Ethereum’s protocol.

The asset eventually reached an all-time high for over $1,400.

Since then, however, the asset is down over 90% from its all-time high, and after a glimmer of hope at the start of the year that a higher low was being put in – a sign an uptrend is beginning – it only led to yet another lower high, and a new, lower low followed.

Setting a continued sequence of lower highs and lower lows is the definition of a downtrend, and few assets fit this definition as well as Ethereum against the dollar.

Until Ethereum breaks back above $150 and holds it as support, one crypto analyst sees very little reason to expect higher ETH prices in the days to come.

$ETH

The USD pair looks even worse.
ETH dropped by 90%+ and is now ranging putting in lower highs and lower lows.
I like being bullish as much as the next guy but as long as ETHUSD is trading & closing below $150 I see little reason to expect higher prices. pic.twitter.com/MANaB9O2jn

— DonAlt (@CryptoDonAlt) March 25, 2020

Ethereum Must Reclaim This Line Against Bitcoin To Be Bullish

While Ethereum is clearly locked in a downtrend against the dollar, it isn’t fairing so well against Bitcoin, either.

The leading altcoin across the market has lost an important support line against the number one cryptocurrency, and until it can reclaim that level, the same crypto analyst as above says to expect new lows and possible “capitulation” in Ethereum investors on the ETH/BTC trading pair.

Because Ethereum had so strongly performed against Bitcoin at the start of 2020, the crypto market was convinced a new alt season was starting – a period of time where altcoins like Ethereum outperform the first-ever cryptocurrency.

And with altcoins so oversold, and Ethereum often leading altcoin rallies against Bitcoin, all the signs had been pointing to an incoming alt season.

But the selloff that caused the crypto market to collapse earlier this month hit altcoins like Ethereum and others far harder than Bitcoin was hit, causing the asset’s trading pairs to heavily favor BTC.

Until Ethereum can reclaim that line, Bitcoin is bound to outperform the second-largest cryptocurrency by market cap for the foreseeable future.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.