Ethereum / Breaking News / Bitcoin / Analytics
Ethereum (ETH) and other altcoins are at a very interesting point. The daily chart for ETH/BTC shows that Ethereum (ETH) and other cryptocurrencies surged a few percent against Bitcoin (BTC) and all of a sudden everyone starts talking about altcoin season again. That is all fine and good and if it happens but as investors we need not to be in the hoping or wishing business. Looking at the daily chart for ETH/BTC, it is nearly impossible to fathom what makes most of these retail bulls so bullish. There is a strong trend line resistance that goes back to the beginning of the bear market in early 2018. The last time ETH/BTC made a double top at this trend line resistance, we saw the price fall massively. The exact same thing is happening right now but everyone is bullish which makes the bearish case more convincing.
A lot of bears got liquidated on the way up during the recent series of rallies. They might have been right about the long term outlook of the market but they were wrong about the short term outlook. Trading is all about timing and as we know now most retail bears entered short selling positions at the wrong time and got wiped out. Back then, the bulls were not so convinced the price could rise in this manner. It was when the price did print a few green bars tot eh upside that the bulls became more confident and later on, complacent. Now, this bearish setup is staring all of us in the face but very few people are going to take this opportunity. Why? Most of the retail bears already got liquidated and they are too scared to short Ethereum (ETH) at this point while most of the retail bulls have become too complacent and they are reluctant to sell hoping for higher prices.