After Bitcoin halving 1st rally of Ethereum and 1st signal the market cap:
After previous Bitcoin halving which was happened almost on 11th July 2016. The price action of Ethereum started bulish rally. And we have witnessed that the market cap of Ethereum was increased. If we see the coinmarketcap data of Ethereum on July 11th 2016 then at that time the closing price of the Ethereum was $10.46 and the market cap was 856.5 million dollars. Then first rally was started that was upto 12th June 2017 and at that time the market cap of Ethereum was increased by 37.1 billion dollars. Its mean that the market was increased more than 4200%. The Ethereum reached at $401. That’s mean it rallied more than 3900%. Then the world’s second largest cryptocurrency started a correction rally.
After Bitcoin halving 1st rally of Bitcoin and the difference between the profitability:
On the other hand if we watch the Bitcoin chart. Then after halving the Bitcoin started a rally and upto August 2017 the BTC gained more than 650% value. Now if we compare this profit ratio with the profitability that was produced by Ethereum then it is more than 83% less.
The second rally after correction:
After the 1st rally of Ethereum that was up to 12 June 2017. We have witnessed a correction rally and after this correction rally the Ethereum started the next long term move. And this time upto January 2018 the market cap of Ethereum was increased by 135.4 billion dollars. Its mean that the market was increased more than 15000%. And the price action achieved $419 price level that was more than 13400% rally. On the other hand if we watch the Bitcoin chart. Then after little bit price correction the Bitcoin started next rally. And upto Dec 2017 the BTC gained more than 3000% value. Now if we compare this profit ratio with the profitability that was produced by Ethereum then it is more than 346% less.
In these rallies the important point is that the Bitcoin achieved the highest price ever in its history in December 2017. And when the Bitcoin was dropping down in January 2018 the Ethereum achieved the highest price ever in the history of ethereum . It's mean that after recent halving when the long-term move will be started again. Then we can expect that first Bitcoin will turn and achieve the highest price. And when the Bitcoin will be going through a correction rally or moving down then Ethereum can achieve the highest price ever in its history. And Ethereum can again produce far more big profit than the BTC .
Bullish rally of Ethereum:
Bitcoin rally chart:
Second signal the simple moving averages:
If we place the simple moving averages with the time period of 25,50,100 and 200 on the weekly chart of ethereum . And first look back before the previous powerful rally from 2016 to 2017. Then it can be observed that when the 25 crossed up the 50 after that the price action of Ethereum never turned back and started the rally that that was continued to one and a half years. As per coinbase exchange we did not have the 100 200 SMAs available at that time. Therefore we are only watching the golden cross between 25 in 50 simple moving averages. Now if we move to the current situation then it can be easily seen that the price action has crossed up the 25 and 50 simple moving averages. And at this time the price action is trying to break out the 100 resistance. Once all these simple moving averages will form the golden crosses with each other then we can expect the powerful rally like we have witnessed back in 2016 to 2017. At this time the 25 is in death cross with 50 . So we should at least wait for the 25 to cross up the 50 then there will be chances that the price action of Ethereum will turn . However I would suggest to wait for all the golden crosses between all these four simple moving averages. For example the 25 should be above all then we should have the 50 then 100 and at the end of all these moving averages the 200 should be below all these simple moving averages. Then a complete a opened mouth will be formed. And the support of all these four simple moving averages the priceline can start very firm long term up trend.
3rd signal the cloud:
Now I would like to discuss about the third signal that can lead the price action of Ethereum to achieve the next highest price ever in its history. And that is the on the weekly chart. In order to notice the power of this signal we need to again move back in 2016. When the priceline of Ethereum crossed up the cloud in August 2016. And the price action started move that was continued to next 1.5 years. Then after July 2018 since the price action of Ethereum has crossed down this it has never been successful to breakout this cloud again. From July 2018 to April 2019 there were very low chances for the price to cross up the cloud because the priceline was moving far more down than the cloud. And the lagging span of was also at very big distance from the price action. Now at this time we can observe that the has turned very weak in the price action is making 3rd attempt to cross up this cloud. The lagging span has already crossed up the price action and now we can wait for the conversion line to cross up the baseline. This can produce a powerful rally that can lead the price line to cross up this cloud and we can expect that once the priceline will breakout the then it will never turn back for next 2 to 3 years like it did back in 2016 to 2017.
The Bitcoin can start a long-term move before Ethereum and achieve more higher price level. Then Ethereum can start the upward move subsequently. But the profitability of a Ethereum can be more better than the profit ratio of Bitcoin . It is also possible that after acheiving the higher price level the Bitcoin will be moving down and in the meanwhile the Ethereum can start moving up to achieve the higher price level. Therefore it can be possible that many traders would be thinking that if the Bitcoin is dropping down then it is also a sell signal for Ethereum as well. But after selling they can regret like it happened back in Jan 2018.