Ethereum has spent more than two years in being accumulated by smart money at low prices ahead of substantial markup. It has caused the asset to outperform most of the crypto market, including Bitcoin.
However, a new accumulation pattern that Ethereum could be trading within, may suggest that there is one major retest of former resistance turned support before the next major bullish impulse upward.
ETHUSD ROI Reaches 200% YTD, Up Nearly 400% From Black Thursday Bottom
Ethereum is up just under 200% in year-to-date 2020 returns. The top-ranked altcoin is also up just under 400% from its Black Thursday low. But it is still nowhere near its previous all-time high.
The cryptocurrency set the record in early January 2018, just as Bitcoin’s bubble was popping. Ethereum’s rise and rally were fueled by the overall crypto market rising tide, and a boom in initial coin offerings.
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ICOs eventually dried up, and demand for Ethereum did as well, causing a nearly 95% collapse in the smart-contract focused altcoin.
But after two years of bear market accumulation phase at low prices, Ethereum has started to recover towards its former all-time high of $1,400. Before it gets there, however, the cryptocurrency may have another retest or two ahead of it, before the new bull run in Ethereum begins.
Ethereum Accumulation Cylinder Suggests Major Retest Before Full Bull
Several financial analysts have dedicated their study toward understanding different phases of market cycles. Richard Wyckoff popularized accumulation and distribution theories, however, Jesse Livermore also spotted his own unique accumulation pattern.
According to Livermore, assets can accumulate in a widening wedge-like manner. Price oscillates between two widening trendlines, a full total of seven times, before acting as a launchpad toward peaks eight, nine, and ten.
ETHUSD 2020 Livermore...