Technicals Point To Extended Ethereum Dominance Over Bitcoin

Tony "The Bull" Severino

1 year ago

3 mins read

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Although institutional interest has undeniably been focused on Bitcoin, Ethereum’s lower cost of entry and unstoppable momentum, have allowed the altcoin to outperform the top crypto asset by market cap recently.

A near flawless technical pattern yet to break out coinciding with a trend strength measuring tool approaching pivotal levels, suggests Ethereum’s dominance over BTC not only will continue for the time being, but the intensity will soon increase substantially.

Ethereum Breaks All-Time High, Restores Hype In Altcoins

Ethereum this week finally surpassed its former all-time high of $1,400 set back in January 2018. Bitcoin’s waning momentum has turned capital flows toward the second-ranked cryptocurrency and top altcoin ever since.

Dmytro Volkov, CTO of CEX.IO says that although Bitcoin trading volume has “doubled” recently on renewed “hype,” Ethereum trading turnover on the platform has increased three-fold during the same timeframe. The ETHUSD trading pair specifically soared to over five times the average trading volume, accounting for as much as “20%” of the platform’s total volume.

Top industry analysts expect Ethereum price to follow the trading volume and double now that the record has been smashed, much liked Bitcoin did. But that’s not the only pattern that the altcoin could soon repeat.

Ethereum could soon repeat Bitcoin's breakout | Source: ETHBTC on TradingView.com

ETHBTC Forms Near Flawless Technical Pattern On The Verge Of Powerful Breakout

The chart pictured above shows the symmetrical triangle pattern formed over the last several years between the altcoin and top cryptocurrency.

After the first year of price action, the trend has mostly favored Bitcoin. But that is all about to change. Much like Bitcoin’s enormous breakout against the dollar once it smashed through the top trendline of the triangle, Ethereum is ready to do the same against BTC.

And given the momentum that Bitcoin has on its own, the rally in Ethereum is poised to be something for the history books.

Momentum is building up pressure below resistance for a strong breakout | Source: ETHBTC on TradingView.com

A breakout appears imminent, backed by building bullish buying pressure and an almost nonexistence presence of sellers, according to the Average Directional Index and the Directional Movement Index. These tools combined show when buyers or sellers are in control, and how powerful the strength of the trend is.

Currently the red line on the DMI has sunk far below the green line. The bullish crossover points to more upside ahead, while the ADX itself growing to above 20 suggests the trend is only starting.

A coinciding inverse head and shoulders and rounding bottom formation has built a base at which Ethereum will launch against Bitcoin from.

Unless there’s a sudden and sharp reversal across the board, the top altcoin will give Bitcoin a run for its crypto market dominance in the months to come.

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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