I may insist on the cross ETHBTC but my persistent mantra is simply “easy money”…with minium risk…Since our last comment on the matter ETH lost another 5% and as the Fibonacci projection shows there is room for anoter 6% in the short term. While the long tem chart with its Head and Shoulders pattern still shows there is room to drop least another 30 % to the weekly 200 moving average support at 0.0400 which is also 0.61% fibonacci projection target.
You are selling Crypto (namely ETH) and buying Crypto (that is BTC) de facto neutralising the exposure towards the sector. Yes, indeed it could go the other way round and ETH recover value against BTC. However I believe any rebound would be temporary because the technical picture and the current SECULAR trend is well set towards downside. Last but not least the Behavioral component of our global analysis has definitely taken over the mind of historical Crypto holders.
Most serious Crypto investors have now realised that the OVERWEIGHT of ETH exposure against BTC which began late 2020 up to end 2021 was EXCESSIVE. At the time justified by the argument that ETH would progressively take over BTC’s market share and role as the leading currency.
This is wrong; the only crypto that is recognised and most importantly USED in the real world as a Currency is only BTC. ETH also makes use of the distributed ledger technology known as blockchain. But ETH is being used to create applications that go beyond just enabling a digital currency, allowing the deployment of smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party.
BTC and ETH are in essence both digital currencies, but the primary purpose of Ether is not to establish itself as an alternative monetary system but rather to facilitate and monetize the operation of the Ethereum smart contract and dApp platform. So, ETH blockchain protocol was initiated in 2015 as an improvement of BTC’s blockchain. However 7 years later other newer and efficient blockchain have progressively challenged ETH, namely BSC (Binance), Cardano and Solana just to name the first 3 in a list of 7 real contenders.
To conclude and summarise the financial aspect: we believe that selling ETH and buying the same amount of BTC is an easy trade, with limited upside risk and practically ZERO risk in Crypto exposure.
We first talked about selling ETH vs BTC when price was at 0.0610. It is now at 0.0560 and still has room to at least 0.0400 before any serious rebound. Another 30% PROFIT ahead!
We have sold and will sell any rebound waiting to reach 0.0400 before taking profit.