The conversation across crypto is no longer only about Bitcoin. Ethereum is the most important cryptocurrency to the ecosystem since the former’s creation, and has recently stolen the show.
On the ETH versus BTC trading pair, the recent market structure resembles an accumulation pattern moments before the liftoff phase. If the pattern is accurate, a market cap “flippening” could soon become a narrative that rivals the story of digital gold itself.Ethereum, Bitcoin, And Disrupting Digital Finance
During the year 2020 and with the onset of the pandemic, all things digital became far more important to the global ecosystem – and no more notably than in finance.Among the other reasons for digital assets to thrive in the 2020-forward economy, was due to the abundance of fiat value being added to the balance sheets of the US Fed. Gold in theory should thrive in such a situation, but instead the world has turned to Bitcoin and its altcoin brethren as the up and coming store of value.
As important as this changing of the guard has been for crypto overall – and the fact it could not have been done without Bitcoin – it is .Related Reading | The Chart Pattern That Takes Ethereum To $10K
At under $4,000 per coin, each ETH is still priced feasibly enough that someone can afford a whole one. Buying up 32 of them, lets the wealthy earn an APY back in rewards through staking. It is regularly in the demand for everyday use in transactions as gas, and fees are almost always high forcing users to pay a hefty sum of ETH in exchange.
All of these factors combined could explain why on the ETHBTC trading pair, the asset is in a clear accumulation pattern, and why the digital gold narrative could soon turn toward a “flippening” narrative instead.Is this Livermore "speculative chart" valid? | Source:
Could Accumulation On The ETHBTC Pair Lead To A Flippening?
Narratives themselves can be self-fulfilling prophecies if enough believers buy into the tale. The above chart suggests that many have bought into the tale of Ethereum itself, and a wave of more could come piling in.What the chart above also depicts is the ETHBTC trading pair in a Livermore Accumulation Cylinder that technical analysis pioneer Jesse Livermore popularized long before Ethereum was ever launched.
Related Reading | New To Ethereum? Learn To Trade With The NewsBTC Trading Course
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Featured image from iStockPhoto, Charts from TradingView.com