Ethereum Buy Signal Hints At Sustained Bitcoin Outperformance

Tony "The Bull" Severino

Last Updated: March 27, 2020 5:00 pm

3 mins read

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Ethereum kicked off the year, showing stellar performance compared to Bitcoin, leaving the leading crypto asset in its dust.

But following over 100% returns, Ethereum’s recent pullback was far more devastating than Bitcoin’s. However, on ETH/BTC charts, Ethereum just triggered a buy signal that suggests the asset will outperform Bitcoin for the foreseeable future.

Ethereum’s Long Road to the Bottom and Finding a New Use Case

Compared to Bitcoin, Ethereum has barely recovered from the beaten it took following the crypto bubble popping in late 2017 and early 2018.

During the year leading up to the collapse, the ICO boom drove demand for Ethereum, taking its price to over $1,400 per ETH token, as crypto investors traded the altcoin in exchange for access to early launch phase crypto projects.

At its low, the asset fell to $80, dropping well over 94% in value. During the same timeframe, Bitcoin fell just 84%.

At current prices, ETH/USD is still down over 90% from its all-time high, while BTC/USD is trading just 66% below it, showing that the leading cryptocurrency by market cap has strongly outperformed the second-largest crypto by a large margin for the last two years or more.

The underperformance has led to an 84% decline in the ETH/BTC trading pair since Ethereum peaked in 2018. At the low, the fall reached a total of 87% before a rebound began.

After the ICO boom fizzled out, Ethereum floundered, searching for a use case to prove its value once again.

That use came arrived via the rapid growth of the decentralized finance industry, in which Ethereum plays a primary role.

ETH/BTC Buy Signal Suggests Altcoin Will Outperform Bitcoin In the Days Ahead

Ethereum experience an aggressive rebound, growing 100% in less than two months on the ETH/USD pair before the coronavirus-related panic selloff took the wind out of its sails.

However, Ethereum may not be done just yet when it comes to catching up against Bitcoin.

The number one altcoin just triggered a TD 9 “buy” signal on the TD Sequential indicator created by market timing expert Thomas Demark.

The tool has been accurately used to spot a number of tops and bottoms across a wide variety of assets including cryptocurrencies. More famously, the tool was used to call Bitcoin’s all-time high peak in 2017.

Crypto analysts have been pointing to a massive symmetrical triangle on the ETH/BTC trading pair, which could lead to a 90% or more breakout in either direction. With this latest buy signal appearing for Ethereum, the chances have increased that the 90% gain will be against the first-ever cryptocurrency.

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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.