It seems ethereum bulls really don’t like the ₿0.016 level, with bulls charging in September when it was reached, and now again in December.
We’ve zoomed at 4 hours in particular because the recent move suggests a breakout from the recent sideways, while that candle on the 8th of January at ₿0.16 suggesting a very bottom looking action.
Calling a bottom however is usually not a good idea because price doesn’t like being predictable, so this is not a bottom, but there’s quite a few things that suggest this is probably oversold.
You might need a magnifying glass to see the above chart, but ethereum’s value against bitcoin is considerably lower than even at the very beginning of 2016 when it reached almost ₿0.04. Now it’s half that.
You can’t see the second aspect in this chart even with a magnifying glass, but there are two classic bottom indicating candles. One in September and another in January.
The third aspect is that at this zoomed out level, ethereum’s ratio has been sidewaying since July. Now, that’s a very long time.
Bulls basically have seemingly established iron support, and they’ve been defending it for months and months. So like Russia always marches back when anyone tries to take Moscow – with ruskies occupying Napoleon’s France and Hitler’s Germany after failed invasion attempts – so too bulls perhaps will march on bears which might now be tired.
The above general market price action probably has a lot more to do with the recent eth movement, but the excuse used is a yet another weeks not months comment by the new CFTC Chief:
“We are doing a lot in the digital asset space. We are seeing exchanges started to list; certainly, we have seen Bitcoin Futures, both cash-settled as well as physically-delivered.
My guess is we are going to see Ether Futures as well. And as things start to migrate into the commodity space, we will see even more.”
So call me maybe, but bulls probably didn’t need much of an excuse and the bitcoin maxis are probably tired now as well as maybe more focused on bitcoin’s price movement as it eyes that big $10,000.