After 90% crash, Ethereum just printed a major cycle bottom: fund manager

Believe it or not, there was a time when a single Ethereum traded for over 0.10 BTC, meaning that you could sell a mere handful of the altcoin and obtain a whole Bitcoin as a result.

However, it’s a whole different story today; since the highs set at the peak of 2018’s bubble, altcoins have fallen off dramatically by dozens and dozens of percent, crushed under the pressure of a dominant Bitcoin that has benefited from a strong first-mover advantage and sell-offs in the altcoin market. 

Chart from TradingView.com

But, according to a fund manager and a flurry of fundamental signs, it may be time for Ethereum to start to reclaim some of its lost gains.

Ethereum may have finally printed a “major cycle low”: fund manager

Late last year, ETH traded as low as 0.016 BTC.

But, when Bitcoin maximalists were certain the altcoin was well on its way to zero, it reversed, with the trading pair attempting to double when it nearly reached 0.029 BTC just earlier this year.

According to Mohit Sorout — partner at crypto fund Bitazu Capital — it is “quite possible that ETH has printed a major cycle low [against Bitcoin],” pointing to the below chart, which he claims shows a bullish “weekly market structure.”

As to why exactly it signals upside is likely, he pointed to two factors:

  • ETH/BTC has begun to print consecutive higher lows and higher highs, indicative of a reversal
  • And the directional movement index (DMI) indicator has recently crossed bullish.

It’s not only Sorout’s technical analysis that signals the Ethereum low is in, as there are also two fundamental factors corroborating the sentiment the bottom is in.

Last Saturday, the Ethereum 2.0 upgrade got its latest testnet named “Topaz.” According to Etherscan data, there are around 20,000 active validators on the network, suggesting…

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