This BTC/ETH Price Analog Is Working

What follows below is rampant speculation. Do not take any of this as investment or trading advice.

Bitcoin vs Ethereum Price Charts

We originally posted this analogy comparing the first (2013) exponential ramp in Bitcoin to the Ethereum price ramp of the last few months. This isn’t a prediction, but I find it quite interesting. You could make a case that Ethereums price is tracking this initial run of Bitcoin.

Ethereum now vs Bitcoin 2013
Ethereum price ramp compared to bitcoin ramp.

This chart of stock market bubbles (or any investment mania, I suppose) is well known, and seems applicable here. If I had to toss a guess, we’re in the bull trap phase. Ethereum is right around ~$200 now and I’d speculate that round numbers often prove to be support areas.

Investment Mania

Another interesting thing about this analogy – the Bitcoin hard for is 20 days from now. There was 20 days between the “Bull Trap” phase and “Return to Normal” in the Bitcoin price bounce. If Bitcoin forks on August 1st that could have a major price impact on all cryptocurrencies and drive real “Fear” into the crypto market.

Bitcoin Peak to Trough vs Ethereum

We’ll keep updating this chart to keep an eye on this analogy. While I believe in Ethereum long term, the Bitcoin fork and Ethereum ICO’s it could make for a bumpy road in the short term.

One thought on “This BTC/ETH Price Analog Is Working

  1. A corollary. The first electronic trading systems we had at CME were around 27 TPS (trades per second). Every time they added headroom to the system, it immediately filled up. Every time we thought we had enough headroom, we didn’t. Now the system is so fast, a trade happens faster than you blink your eye and they process millions of trades per second.

    If bitcoin is going to be a credible threat to credit card payment systems, its processing power is going to have to get a lot larger.

Leave a Reply

Your email address will not be published.