Why Ethereum Dominance Could Be In “Grave” Danger

Ethereum is the second-largest cryptocurrency ranked by market cap. A recent Merge “upgrade” to a proof-of-stake consensus mechanism and other changes raised discussion of a possible “flippening” — a situation where Ethereum unseats Bitcoin as the top cryptocurrency in the market. Instead, Ethereum’s dominance could be in “grave” danger, if an ominous-sounding Japanese candlestick pattern is a prelude of what’s to come across the crypto market.

Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! Lagging Performance Against Crypto Leaves ETH. D Exposed To Danger While Ethereum might be up by 90% from its bear market low compared to Bitcoin’s 50%, when comparing year-to-date returns BTC’s 50% gain against USD beats ETH’s mere 40%. From this metric alone, it’s obvious that Ethereum has been lagging behind Bitcoin.

As of the last couple of weeks in crypto, the reason for the laggard behavior was revealed: the SEC began targeting cryptocurrency businesses, specifically for offering staking to customers. Related Reading: Kraken Settles With SEC And Ends Staking Services Rather than the Merge causing Ethereum to outperform the market, it’s caused an opposite effect. Fears over ETH potentially being labeled a security have also raised concerns.

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A Gravestone Doji Could Damage Ethereum Dominance ETH. D, representing Ether’s dominance compared to the rest of the market, closed the January monthly with an ominous-sounding Japanese candlestick pattern called a gravestone doji. A gravestone dojo appears | ETH.

D at TradingView. com The Japanese candlestick pattern is a potential bearish reversal signal, formed when there is an open, low, and close in the same general level, with a long upper wick. The formation shows bulls pushing prices higher, only to met with a strong rejection by bears back down to the open and low of the candle.

Related Reading: Dollar (DXY) Reaches Inflection Point, Critical Level For Crypto Continuation This type of behavior, and the candlestick signal, tend to appear before an extended down move. The opposite signal is called the shooting star and involves inverse formation dynamics. A small, bottom wick is acceptable, but the pattern often appears with a completely flat bottom.

Bearish momentum is increasing | ETH. D at TradingView. com Like any Japanese candlestick pattern, the signal is stronger when technicals and other chart patterns support what the gravestone doji tells the market.

For example, a potential failure to reclaim a long-term trend line and strengthening bearish momentum add to credence to the signal. The gravestone doji is also appearing at long-term resistance that thus far Ethereum has been unable to break through. The bullish alternative | ETH.

D at TradingView. com As a bullish alternative, even with further correction in ETH dominance, the chart could be forming a massive inverse head and shoulders pattern, possibly pointing to a future price target that would set new all-time highs against Bitcoin, and renew talk of a “flippening” in crypto. Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education.

Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView. com Share Tweet Share Share Sign Up for Our Newsletter! For updates and exclusive offers enter your email.

Sign Up I consent to my submitted data being collected and stored. Leave this field empty if you’re human: Tony Spilotro I’m Tony Spilotro. Behind the pseudonym, I’m a digital media executive and global remote work leader with a decade of content experience and excellence.

Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck – literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution.

While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn’t yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can’t yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me.

Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together. Related Posts Zhejiang Testnet For Ethereum Staking Withdrawal Goes Live 3 weeks ago Ethereum Network Usage Skyrockets As ETH Hits Two-Month High 3 weeks ago Ethereum Staking Service Providers Make Up Over 70% Of Staked ETH Supply 4 weeks ago Ethereum Total Validators Surpasses 500,000 As Shanghai Upgrade Draws Near 1 month ago Bearish Signal: Bitcoin, Ethereum Profit-Taking Reach 2021 Levels 1 month ago Ethereum DeFi Suffered 76% Decline In Total Value Locked This Year 2 months ago.