ETH recently broke below its historical support of 0.025 BTC and printed a fresh all-time low of 0.020138 BTC on Binance on July 16. With no support to keep its head above water, bears warn that the ethereum price could plunge indefinitely.
Nevertheless, two contrarian crypto traders believe that ETH/BTC’s outlook is far from bleak. In fact, they predict that the ethereum price could be on the verge of a major pump.
Ethereum Market Cycles Follow Five Distinct Stages
Technical analysis is the study of historical price action. History tends –but does not always – repeat itself, which is why fractals appear in the charts of many assets.
Ethereum has historically followed a relatively predictable trajectory against bitcoin. That’s according to a pseudonymous Twitter account named Panama B. On July 25, the analyst demonstrated how the ETH/BTC market followed the exact same pattern during its two previous cycles.
Looking at the chart, the resemblance between the two market cycles is undeniable. It appears that the ETH/BTC pair follows five distinct stages: