Ethereum Confirms Bullish Retest Of Crucial Support Against Bitcoin

Tony "The Bull" Severino

1 year ago

3 mins read

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Ethereum spent the summer months easily outperforming Bitcoin, but that trend reversed as soon as the fall months hit. The change in tune towards the DeFi trend helped take the second-ranked cryptocurrency down to retest resistance turned support.

The bullish retest has since held, and it could take the altcoin back to retest highs on its ratio against BTC. Here are the key levels to watch and a deeper look at the support level that has held and why it is so important to the future of the crypto market.

Altcoins Are At Do Or Die Level, Ethereum Arrives To Save The Day

Over the last few weeks, Bitcoin’s unstoppable rally to nearly $16,000 has sucked the capital out of the altcoin market.

The overperformance of the DeFi space eventually corrected hard, taking Ethereum down with it, and causing the top-ranked alt to tank on the BTC pair.

BTC dominance is back to retesting recent highs, sending the once trending altcoins back down to retest support against Bitcoin.

The monthly chart shows a critical retest and confirmation of resistance turned support | Source: ETHBTC on TradingView.com

Ethereum’s support on monthly timeframes dating back all the way to 2016 has held strong after the crypto asset reclaimed the resistance level.

A bullish retest on high timeframes could signal that altcoins are about to turn around against the trending Bitcoin.

Inverse Head And Shoulders on ETHBTC Trading Pair Could Cause Ratio To Retest Highs

If Ethereum can continue to maintain over the monthly support level, it could lead to the completion of an inverse head and shoulders chart formation.

This type of chart pattern is often a bottoming pattern, which could point to a longer recovery in Ethereum against the first-ever cryptocurrency.

 The weekly chart depicts an inverse head and shoulders in the making with a +100% target | Source: ETHBTC on TradingView.com

From the peak of the head to the neckline of the structure, was a 120% run. According to the measure rule, applying the height of the pattern to the point of breakout provides a potential target of nearly 0.08 on the ETHBTC ratio.

The highest price ever recorded on the ratio, was 0.15, making one Ethereum worth roughly 15% a single BTC. Today, Ethereum trades at just under 3% that of the price of a Bitcoin, but if the pattern completes, will get a lot closer to 10% before the summer of next year.

And when Ethereum does finally surge after confirming the key level as support, it could take the rest of the altcoin market with it, and start the new crypto bull run officially.

Featured image from Deposit Photos, Charts from TradingView.com

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.

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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.
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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.

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