Ethereum Hasn’t Even Started: 3 Technical Signs Suggest Bull Trend Coming

Ethereum Forms Pivotal Bull Signals

Ethereum has dramatically underperformed Bitcoin over the past two weeks. The leading crypto asset has gained around 13% as BTC has surged closer to 20%.

Despite this underperformance on a short term basis, analysts think that ETH will soon see an explosion in price appreciation.

One crypto-asset analyst shared the chart below on October 27th. It shows that Ethereum is currently underperforming BTC but may soon catch up due to a number of technical signals. He specifically pointed to three technical signals, derived from the Ichimoku Cloud indicator. These signals are as follows:

“$ETH hasn’t even started yet: retested the flat Tenkan, chikou pointing up after bounce on Kumo, bullish future (twist). Spot buys done here Ballot box with check. Opening Perps on 1st blue HA candle / break of WF”

Chart of ETH's price action vs that of Bitcoin over the past few weeks with analysis by crypto trader Trading Cyclist (@Fullgastrader)
Source: ETHUSD from TradingView.com

Likely to Outperform BTC Moving Forward

Despite this, analysts think that Ethereum may outperform Bitcoin moving forward.

Su Zhu, CIO and CEO of Three Arrows Capital, recently shared the following sentiment:

“$BTC going up swiftly is not only not bullish for alts but it’s bearish. reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant.”

https://twitter.com/zhusu/status/1318328184652197888

We’ve seen this play out quite well over the past week. As aforementioned, as Bitcoin has rocketed higher, ETH has been lagging.

Ethereum may continue higher, though, once Bitcoin begins to consolidate and capital made in BTC longs begins to cycle down the crypto risk spectrum.

This may not take place for a while, though. Analysts also note that the Bitcoin dominance metric, which tracks how altcoins perform against BTC, is set to move higher.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Hasn't Even Started: 3 Technical Signs Suggest Bull Trend Coming
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