A closely followed crypto analyst says that Ethereum (ETH) will dip down to test its lower boundary before sparking a massive rally to the upside.
In a new strategy session, crypto trader Ali Martinez tells his 127,700 followers on the social media platform X that the second-largest digital asset’s best-case scenario has it testing the $2,300 level as support before skyrocketing 47% past $4,000.
However, Martinez notes that the leading smart contract platform by volume’s worst-case scenario could have it forming a double-top pattern, a bear flag that generally signals the end of a bull market.
“In the best-case scenario, Ethereum is range-bound, meaning it could test $2,300 support before rebounding toward $4,000. However, in the worst-case scenario, this could be shaping up as a double-top pattern.”
Martinez goes on to warn traders that altcoin season could be canceled this time around if Ethereum fails to maintain the $2,600 level. However, he notes that whale activity centered around the top altcoin has risen.
The trader concludes his analysis by saying that if Ethereum were to lose the $2,600 price tag as support, it could crash all the way back down to somewhere between $1,700 and $2,000.
“Ethereum is currently consolidating in a parallel channel… Currently, Ethereum is sitting in the lower support trend line, which is not good. Essentially, losing this level at $2,600 as support could lead to steep correction to $2,000 or even $1,700, which is why no one is buying Ethereum right now.”
Ethereum is trading for $2,720 at time of writing, a fractional increase during the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised 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 buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Katynn/monkographic
Credit: Source link
