Sell Setup Triggers On Ethereum Following Monster 50% Two-Day Surge

Tony "The Bull" Severino

4 years ago

3 mins read

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In just 48 hours, Ethereum rocketed over 50% from $770 to roughly $1140 at last night’s overnight high. The massive Sunday candle was the lead up to a sell signal forming on daily timeframes.

Was this latest push higher the last impulse in Ethereum’s bull trend? Or like Bitcoin, will this sell signal fail, and the top-ranked altcoin soars to a new all-time high?

Happy New Year: Ethereum Surges More Than 50% First Week Into 2021

Although it is hard to argue that 2020 was the year of Bitcoin, Ethereum outperformed the top cryptocurrency by a sizable margin. With only four days into the new year, 2021 already looks as if an encore performance is coming.

For the 30% ROI Bitcoin has to show for the year so far, Ethereum has grown more than 50% from the start of the year to last night’s high.

The higher high on daily timeframes on the USD trading pair has resulted in a perfected sell setup using the TD Sequential indicator created by market timing wizard Thomas Demark.

The tool had proven incredibly accurate all throughout the bear market, but since Bitcoin turned bullish, the tool has been less effective for calling tops or bottoms. Will the formerly flawless trend change predictor fail at calling a reversal in Ethereum, just as it did for the first-ever cryptocurrency?

A perfected TD 9 sell setup has appeared at the recent daily high | Source: ETHUSD on TradingView.com

Could The Once Flawless Sell Setup Fail Again, As It Did With Bitcoin?

On daily timeframes, the TD Sequential indicator has lit up with a “9” sell setup. After a specific sequence of candles forming an uptrend, the “9” appears signaling that a reversal is likely. Things can, however, keep going, which will result in a countdown to “13” – which says the trend by at that point should be fully exhausted.

The indicator’s creator Thomas Demark has a reputation for mastering the timing of markets but has dead wrong recently when predicting Bitcoin would reverse.

Demark’s “model” perfectly predicted the 2017 and 2019 “tops” along with the December 2018 bear market bottom, but when it was telling him recently that the top crypto asset’s trend would fizzle out in December, not only was it an incorrect call, but Bitcoin added another $10,000 to its price point since.

Ethereum is at a similar point in its surge as Bitcoin was prior to that now proven incorrect call, and if the momentum is as strong, the sell setup will be ignored and instead used to lure sellers in to squeeze the price higher.

Only time will tell if the setup to sell was the right call this time, but with the perfected “9” on today’s daily ETHUSD candle, we could get confirmation sooner than later about which direction the altcoin will select.

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.

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.

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