A widely followed crypto analyst says that Ethereum and altcoins are bracing for a swing to the upside as ETH prints the same pattern it did in 2020.
In a new video update, crypto strategist Jason Pizzino tells his 344,000 YouTube subscribers that the Ethereum/Bitcoin (ETH/BTC) pair is flashing a “major altcoin signal.”
However, he warns that altcoins still have a bit further to drop before market sentiment turns around and sparks a rally.
“ETH/BTC in November got a bounce but again it still has not broken past at least the 4% level and the major level that I’m watching for an overbalance in price here is 0.046 [BTC].
That’s going to give us an overbalance in price to the upside and ideally if [the 0.032 BTC] low isn’t taken out, it’ll be overbalanced in time as well and that would be that major altcoin signal, when everyone has that extreme greed, the excitement and the belief that these markets are just not going to come back down.
We’re still not there yet so I don’t think it’s too crazy to think that we’d see further at least consolidation but until that happens, you’re probably not going to get that same extreme excitement to the upside.”
According to the trader, ETH/BTC is mirroring the same pattern it did in 2020 before taking off.
“It’s similar to what happened in December of 2020 and what followed December 2020 is your massive January bar: big, big volume, big reversal…
So we have a look back to January [2021]. You start to see that volume really pick up early on and just come back out of nowhere. You can see [December 27th, 2020] it started to pick up and [on] the 3rd of January [2021], [a] nice big move. Third and fourth [of January], [ETH/BTC] starts to break those tops and then consolidate above those support levels.
You can see they’re around 3% and then it started to move again – sure it came back down, but that gives you the overbalance that you’re looking for, meaning more buyers for a longer period of time and they’re holding the price up. That’s exactly what we need to see, and we haven’t seen it yet with the ETH/BTC chart.”
ETH/BTC is valued at 0.0342 BTC ($3,264.68) at time of writing.
Generated Image: Midjourney
