Top Crypto Analyst Issues Ethereum Alert, Says ETH Rally Different From March 2021 Bull Run
A popular crypto strategist issues a warning to Ethereum traders saying that ETH’s recent rally is not the same as last year’s bull run.
Pseudonymous analyst Rekt tells his 327,800 Twitter followers that while Ethereum managed to stay above the $1,500 support, he believes that ETH will likely resume its downtrend after a rebuttal.
“If ETH enjoys stronger follow-through from this recent successful retest of orange support, then ETH could rally and form a macro lower high, much like early 2021. The lower high would form at ~$1,800.”
A macro lower high indicates that the trend is bearish and that the rebound is likely to be short-lived.
Rekt also highlights that even if ETH trades between $1,500 and $1,800 just like it did in March 2021, he says the less than stellar reaction of ETH bulls at ranged support shows the difference in trend.
“Compared to early 2021, however, the reaction is not as volatile now. There was no wick into the orange area to demonstrate a strong buy-side reaction.”
Meanwhile, co-analyst Michaël van de Poppe believes a catalyst could push ETH above $1,800 and change the prevailing sentiment around the leading smart contract platform.
“The Ethereum fork happens on September 6th, which increases the chances of The Merge being a success -> sentiment changes.
The scenario is still going as planned. I don’t want it to drop below $1350.
If strength continues -> $2200 next.”
The merger is Ethereum’s highly anticipated transition from a proof-of-work consensus mechanism to a proof-of-stake.
At the time of writing, ETH is changing hands at $1583, flat on the day.
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