ETH ROI reached 200% YTD and is moving towards ATH based on this accumulation pattern

ETH spent more than two years accumulating with smart money at a low price before a significant increase. It has made this asset outperform most cryptocurrency markets, including Bitcoin.

However, a new accumulation model that Ethereum could be trading may indicate that there was a re-test of old resistance turned support before the next big bullish momentum emerges.

ETH ROI reached 200% YTD

ETH has achieved a YTD return of 200% in 2020. The altcoin is also up just by nearly 400% from Black Thursday’s lows. But it still hasn’t reached an all-time high before that.

ETH set a record in early January 2018, just as the Bitcoin bubble burst. The rise and recovery of Ethereum were driven by the overall increase of the cryptocurrency market and the boom in ICOs.

The ICO is finally exhausted, and so is the demand for Ethereum, causing a nearly 95% collapse for altcoins.

But after two years of bear market accumulation at the low end, ETH has started to rebound back to an all-time high of $ 1,400. However, before getting there, the cryptocurrency may have to another retest or two before beginning a new bull run in ETH.

Accumulation cylinder pattern

Several financial analysts have studied to understand the different phases of the market cycle. Richard Wyckoff is well known for his accumulation and distribution theory, and Jesse Livermore also developed his own unique accumulation pattern.

According to Livermore, assets can accumulate in an extended wedge pattern.
The price fluctuated between two extended trendlines, a total of seven times, before acting as a launchpad towards peaks of 8, 9 and 10.


Source: TradingView

Current price action and patterns show that ETHUSD is only mining the top points of the touch 4, and is led towards the lower trendline for the touch 5. Another rally took ETH to the sixth point, where a drop to 7 started the parabolic push.

At that point, ETH will rise to new highs, breaking its previous record. Breakout targets are similar to the last similar structure in ETH, targeting the next top around $ 4,500.


Source: TradingView

When compared to the probable Livermore accumulation column for current and previous cyclical price action, it can be seen clearly that ETH has followed an almost exact pattern.

By the time the cycle reaches point 15, the bottom has occurred, a short consolidation has occurred, and now ETH is likely to begin its next accumulation pillar.

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