Crypto Analyst Says Ethereum Going Through ‘Important Breakout’, Updates Outlook on Solana and Avalanche
A closely followed analyst offers his take on Ethereum (ETH) and two of its biggest rivals as digital asset markets see another upswing.
In the latest TechnicalRoundup newsletter, pseudonymous analyst Cred says that ETH is back in charge, but is now at risk of a failed breakout that could signal further downside for ETH.
“The breakout in particular is important, but if it fails, it’s a very bad sign for the market overall. We think a similar claim can be made in this case, i.e. if the breakout fails and Ethereum/Dollar closes back below the $1,200 area, it would be a bad sign. Breakouts are good until they aren’t.”
Supporting a bullish thesis for Ethereum, Cred says that ETH’s Bitcoin pair (ETH/BTC) has a “bullish price structure” that could bode well for the second largest crypto asset by market capitalization.
Cred also has its eye on top Ethereum rival Solana (SOL). The analyst says that while SOL and other altcoins have shown significant strength, Solana bulls may be better off waiting for a pullback.
– By definition, this is one of the better areas for profit taking and one of the less attractive areas for fresh long positioning. The past week has seen a strong altcoin-led rally, and these rallies have now peaked important inflection points across many charts.
Conservatively… the better long setup would be either some sort of higher low pullback, or more compelling, strong continuation through these inflection points. Buying the first test of fresh resistance because the market has gone up a lot is not our preferred setup, especially if waiting a week (at most) is likely to provide a much greater sense of direction.”
Fellow Ethereum challenger Avalanche (AVAX) is also facing a wall of resistance, according to Cred. The analyst says he prefers to wait for a convincing recovery of the $25 level before becoming more bullish on AVAX.
“The logic here is very similar to the section on Solana: retest of resistance, poor contextual area for fresh long positioning, and probably worth waiting a week (at most) for either a recovery setup to form or for resistance to do its job .There is a recurring theme here: the very “light” part of the altcoin bounces is most done and prices have now reached more difficult areas in the form of key weekly resistance levels.”
Cred says that ultimately, a breakout for Bitcoin (BTC) to around the $30,000 level will be a key catalyst for the altcoin markets.
At the time of writing, BTC is trading at $23,265, up 15% in the last seven days.
Don’t miss a beat – Subscribe to have crypto email alerts delivered directly to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/klyaksun/AtlasbyAtlas Studio
