Here’s Where The Ethereum Rally Could Pause, According To Bitcoin Blueprint

Tony "The Bull" Severino

1 year ago

3 mins read

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Ethereum is ripping, now well above $4,000 per ETH and in full price discovery mode. But with no obvious resistance levels, how can anyone prepare for when the trending altcoin runs out of steam and eventually reverses?

Technical analysis indicators, as well as fundamental tools are two possibilities, however, simple mathematics could also play an important factor. Here’s how, along with a look at how the same math stopped the Bitcoin bull train in its tracks.

Crypto Market Cycles, Expectations, And Wild Analyst Targets

As much as analysts and traders can get a good read on an asset and its value, or even how price action could play out, there’s truly no predicting every aspect of cryptocurrency cycles.

Years ago before Bitcoin became a household name, analyst had been predicting $2,0000-3,000 per BTC. Yet at the height of hype, it reached nearly $20,000 per coin.

A lot more people know what Bitcoin is now, and it enjoys a lot more brand visibility, recognition, and hype than it ever had before. Expectations for it now run to well over $300,000 per coin, yet the once trending cryptocurrency has been stuck below $60,000 for weeks now after repeated rejections.

The struggle has been largely due to capital flowing into another hotly hyped crypto asset instead: Ethereum.

Ethereum versus Bitcoin Fibonacci extensions compared | Source: ETHUSD on TradingView.com

Will Ethereum Take Pause Where Bitcoin Took A Breather?

Ethereum has not only outperformed Bitcoin in 2021, it has done so since the moment is entered the cryptocurrency market.

Like Bitcoin, Ethereum is well above its former all-time high, but hasn’t yet reached any sort of stopping point. However, that could be very close, if Ether follows the path cleared by the first ever cryptocurrency.

It was clear skies for Bitcoin until only recently once it surpassed its former peak, and it kept right on roaring not just to double its former high, but it has now tripled it and then some.

To be exact, the high reached the 3.618 Fibonacci extension – which also could end up acting as a logical place for Ethereum to pause also.

Fibonacci extensions and retracements levels are ratios based on the Fibonacci sequence – a series of numbers where the sum of the two previous numbers is the following number in the sequence.

ETHUSD just tapped the 3 Fib extension, and is headed to the 3.272 next – the first place where Bitcoin began to struggle with resistance.

The 3.618 extension still remains the local peak for BTC – is this also where the top ranked altcoin will begin to run out of steam?

Featured image from iStockPhoto, 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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