A well-known crypto analyst predicts that Ethereum and other altcoins are gearing up for a bullish turn as ETH displays a pattern similar to that of 2020.
In a recent video update, crypto strategist Jason Pizzino informs his 344,000 YouTube followers that the Ethereum/Bitcoin (ETH/BTC) pair is indicating a “significant altcoin signal.”
Nevertheless, he cautions that altcoins may need to dip a bit further before market sentiment shifts and triggers a rally.
“ETH/BTC saw a rebound in November, but it has yet to surpass at least the 4% level. The critical level I’m monitoring for a price overbalance is 0.046 BTC. This would indicate an upward overbalance in price, along with maintaining the 0.032 BTC low without being breached. This scenario would signal a major altcoin rally, characterized by extreme greed, excitement, and the belief that the markets will continue to rise. Until we reach that point, it’s likely we’ll see more consolidation without the same level of excitement to the upside.”
The trader notes that ETH/BTC is following a similar pattern to 2020 before it took off.
“It resembles the December 2020 scenario, which was followed by a significant January surge with massive volume and a major reversal. Looking back at January 2021, you can see the volume picking up early on, leading to a substantial move. Breaking previous highs and consolidating above support levels around 3% are crucial. This indicates a sustained increase in buyers holding the price up, which is what we need to witness for a true overbalance, something that hasn’t happened yet with the ETH/BTC chart.”
ETH/BTC is currently trading at 0.0342 BTC ($3,264.68) at the time of writing.
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