Ethereum started 2020 bullishly, far outperforming Bitcoin and others cryptocurrency. Well, now it seems that ETH is about to make a major move against BTC but… the direction of this change is not yet clear - says a well-known cryptocurrency analyst.
In one of his tweets, Tyler D. Coates, recalls that Ethereum started the year with a rally of over 100%, doubling prices and helping to lead the rest of the cryptocurrency market to what were, in hindsight, the year's highs.
In this scenario Ethereum and other altcoins have not only exited their downward trend against the US dollar, but have also seen a breakout against Bitcoin.
The analyst points out that the latest price action caused Ethereum to form a large multi-year symmetric triangle on the ETH // BTC trading pair, which would have had a 95% increase or decrease as a target. The triangle is currently reaching its peak, suggesting that this powerful breakout is imminent.
Introduced the foregoing, the analyst then stated that currently the movement is more likely to qualify downwards, rather than upwards, but it is very early to be able to affirm it with certainty.
Of course, this movement would have implications not only for Ethereum, but for the whole market. Ethereum and other altcoins are often the main indicators for the rest of the cryptocurrency market, and in particular, for the altcoin space. In particular, the number two cryptocurrency by market capitalization, which shows signs of falling against Bitcoin, could signal a worse decline in the broader altcoin market.
The descending triangles in the cryptocurrency market have in the past been particularly "lethal". As an example, it is the same pattern that sent Bitcoin from $ 6.000 to $ 3.000, and then again from $ 13.000 to $ 6.000.