Bitcoin decided to take its reigns back just when it seemed like Ethereum was catalyzed for a sustained break out says Benjamin.
“Of course we recognize that Bitcoin controls the market, but leveraging this information and the patterns that come about can be useful for timing key momentum shifts in the market.”
Benjamin says his interpretation of what’s going on is that Ethereum is essentially in a holding pattern after Elon Musk’s Tesla invested $1.5B in Bitcoin, and the news has prompted retail investors to FOMO back into Bitcoin and pushing the price up.
Benjamin believes ETH/BTC pair will most likely decrease as long as Bitcoin remains in price discovery mode but expect ETH/USD pair to hold up fairly well with Bitcoin volatility increasing.
The next stop for Ethereum on the regression rainbow chart is closing in on $3,000 right now on $2,800 [orange band]. The way ETH approaches $2,000 could also be indicative of how likely it is to go to $3,000 or $4,000.
Benjamin imagines a scenario where BTC continues its bull run and ETH gets dragged up to $2,000 on the back of Bitcoin.
“You could certainly argue that a case for a bullish breakout [ETH] whenever Bitcoin volatility comes back down will be even more credible.”