Analyst Known For Calling Crypto Bottoms Predicts Breakout For Ethereum, Solana Says Ready For New Rally
A popular crypto analyst known for calling 2018 the Bitcoin (BTC) bottom believes Ethereum (ETH) is poised for a breakout.
Pseudonymous trader Smart Contractor shares a chart with his 221,700 Twitter followers that suggests Ethereum could shoot up past the $1,900 range in no time.
“I think there is a high chance that the low of the week is on ETH, as it was running highs and lows on an hourly basis and pulled back after the weekly close without an upside wick, plus the structure looks like an ABC [wave].”
Smart Contracter is a popular practitioner of Elliott Wave theory, an advanced technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest itself in waves. According to the theory, a bullish asset tends to resume its uptrend after going through an ABC corrective move.
Ethereum is trading at $1,736 at the time of writing. The second-ranked crypto asset by market capitalization is down 2.9% in the last 24 hours.
Smart entrepreneur too thinking Bitcoin’s recent price surge could mean a couple of different things, though he thinks they’re all bullish for the top crypto asset.
“BTC rallying in all this chaos and having a monster weekly breakout tells us one of two things, but too early to say which yet.
#1. It tells us that BTC is still a risk on the asset and simply moves ahead of stocks, as it always does, and stocks catch up soon
#2. It tells us that it has finally decoupled from trade finance and is now a safe haven that does what it was originally intended to do.”
Bitcoin is trading at $27,812 at the time of writing and is down 0.19% in the last 24 hours.
Smart Contractor also believes Ethereum competitor Solana (SOL) may rally against Bitcoin (SOL/BTC) after taking out its diagonal resistance on the hourly chart.
“Nice SOL/BTC breakout brewing on the back of a beautiful SOL/USD weekly close.”
SOL is worth $22.47 at the time of writing. The 11th ranked crypto asset by market capitalization has risen 1.33% in the last 24 hours.
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