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Upon checking crypto Twitter, cryptocurrency sub-Reddits, and elsewhere in the crypto space, investors are exceptionally bullish on Ethereum compared to Bitcoin. Long positions in Ethereum continue to skyrocket, and the amount of ETH locked up in DeFi grows by the day.
Yet a dead accurate sell signal has just triggered on both ETHUSD and ETHBTC price charts that suggest the largest altcoin in the space is soon going to see a strong correction.
Ethereum Remains 82% Down From ATH, While Bitcoin Trades Halfway To Record
Ethereum continues to struggle with resistance at $250, much like Bitcoin fails to hold above $10,000 per BTC.
Ethereum, however, remains down 82% from the asset’s former all-time high set, while Bitcoin sits pretty at nearly a full 50% recovery. The asset set the record just as the crypto bubble began to burst in January 2018.
Related Reading | Crypto Confusion: Long-Legged Doji Across Altcoin Market Hints At Trend Change
The price per ETH token then collapsed to as low as $80. Current prices represent an over 200% return, but another 475% would be needed to get back to the record of over $1,400.
The upcoming ETH 2.0 launch, a massive surge in the growth of decentralized finance, and general bullish sentiment surrounding the altcoin caused a powerful, nine-week-long rally to kick start the new year, but Black Thursday sent ETH prices tumbling back toward lows.
TD 9 Triggers Sell on ETHBTC, Coinciding With High Timeframe Signals
Ethereum also fell over 85% on the ETHBTC trading pair from the January 2018 peak. Since that bottom on the crypto to crypto trading pair, the second-ranked crypto asset has grown by over 54%.
That meager recovery is now in jeopardy, as the TD Sequential indicator has issued a 9 sell setup on the ETHBTC trading pair.
The recent Bitcoin crash saw capital flow into altcoins, but this dead accurate signal may be an omen that things could soon get worse.
Related Reading | Analyst: Crypto May See an Extended Bear Market Until September 2020
Indecision candles on the total altcoin chart paired with Bitcoin are visible on the weekly and monthly timeframes, suggesting that investors are at an impasse and aren’t sure where prices are headed.
Adding insult to injury, the same signal has appeared on the ETHUSD pair.
Considering how accurate the TD 9 signal has been recent, there’s a strong possibility that prices will soon be headed down, both in terms of USD and BTC value.
The TD Sequential indicator was designed by Thomas Demark, and recent signals triggered across Bitcoin and other crypto assets on the weekly immediately led to a selloff on Monday as the new weekly opened.
The same signal also called Ethereum’s top in January 2018 on the ETHUSD trading pair. Given the signal’s accuracy in the past, a drop in the days ahead is probable.
