Bitcoin, Ethereum, Dogecoin Rally Dampens – Prominent Trader Sees Big Upside in Coming Month with ETH Hitting $2,500

The rally in major coins simmered down Thursday night as the global cryptocurrency market capitalization edged up 0.3% to $1.1 trillion at press time.

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Why it matters: The rally seen in Bitcoin and Ethereum prices, stemming from lower inflation figures for July, was moderated at press time.

Cryptocurrencies appear to be following stocks that have lost gains during the recent broader risk-on rally. The S&P 500 ended flat on Thursday, while the tech-heavy Nasdaq was down 0.6%. At press time, S&P 500 and Nasdaq futures traded flat.

Ethereum saw a more robust price rally compared to Bitcoin recently as FOMO built around the upcoming merger. The merger is a reference to Ethereum’s transition to a proof-of-stake mining model from the current proof-of-work mechanism.

Michael van de Poppe noted that ETH was the “actual asset” propping up the market amid the merger rush. The cryptocurrency trader expects the second largest coin to continue towards the $2,500 mark and Bitcoin towards the $30,000 region in the coming month.

Honestly, #Ethereum is the actual asset carrying the markets as some FOMO starts to get a bit of a grip on the markets with the merger and ETH 2.0 coming.

Through it, expect to see $ETH continue towards $2.5K and $BTC towards the $30,000 region in the coming month.

— Michaël van de Poppe (@CryptoMichNL) 11 August 2022

GlobalBlock analyst Marcus Sotiriou pointed to data from the Bank of America Global Fund Manager Survey which showed that fund managers are more risk-averse than they were in 2008 – the year the global financial crisis hit.

“This preceded a bottom in the market in 2008 and confirms why this recent rally we have seen is so hated, as most professionals have missed it,” Sotiriou wrote, in a note seen by Benzinga.

OANDA senior market analyst Edward Moya said Wall Street is beginning to “guess how soon [Federal Reserve] will be in a position to swing.” Moya said it was “much too early to continue to expect that the next round of inflation readings will maintain the declining pace.”

On cryptocurrencies, Moya said Ethereum is “leading the charge” while Bitcoin has run into a wall of resistance.

“Bitcoin is also above the $24,000 level, but is clearly seeing massive resistance from the $25,000 level. It looks like it may take a bit longer for Bitcoin to rise above the $25,000 level, but when it does, it could take it towards $28,400 level in the first place.”

Justin Bennett said that the daily close for Bitcoin did not look good on Thursday. The trader said the apex coin needs to close above $24,200 to “turn it to support.” He advised his Twitter followers to be “careful”.

Not a great look too $BTC into everyday life.

As I’ve been saying all week, #Bitcoin must close above $24,200 to turn it into support.

Until then, there is resistance. Hence this rejection.

Be careful out there. pic.twitter.com/DQgZCvI2Cq

— Justin Bennett (@JustinBennettFX) 11 August 2022

On-chain research firm Glassnode pointed out that aggregate accumulation, which increased after the collapse of Terra Classic (LUNC) in June due to shrimp and whale cohorts, has begun to soften during the recent rally. The accumulation trend score measures the relative size of entities accumulating Bitcoin on the chain.

The #Bitcoin Accumulation trend scores have started to soften during this rally.

This follows a near-perfect two months of aggressive balance increases following the LUNA collapse, and again in June, driven mainly by the Shrimp and Whale cohorts

Live Chart: pic.twitter.com/bEtaX91GCL

— glassnode (@glassnode) 11 August 2022

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