A pseudonymous crypto trader is warning that the leading smart contract platform Ethereum (ETH) could collapse after a big run to the upside.
In a new strategy session, Altcoin Sherpa says that it is within the realm of possibility for Ethereum to rally well above $2,000 in the coming months.
However, the analyst says that ETH will likely see a swift and deep correction following the surge.
“It wouldn’t surprise me to see something like [a move to $2,5000] and then like, you know, come back down, maybe like $1,500 or whatever. And then we just chop around. There’s going to be some big rallies throughout this range. Don’t get me wrong. Like, for example, it wouldn’t surprise me as I said to go up to $2,500, but I’m still conflicted.
I don’t think that $1,000 is going to come again. But it wouldn’t really surprise me at all to see some late-year destruction where we get down to like $1,500. It’s certainly possible in my opinion. But again, it’s going to depend on the next few weeks, months on how we get up.”
Looking at his chart, the trader appears to predict that ETH could climb to $2,500 in November of this year and decline to about $1,500 in early 2024. The chart shows ETH crossing $1,800 again sometime in March 2004.
The trader also says that ETH’s price action is not convincingly forming a bull cycle.
“I think that it’s just an overall choppy consolidation range right now. I don’t think there’s truly any strong convincing move personally. Yes, you can say this is a bullish market structure, because there are higher highs and higher lows, but it’s not very convincing in the sense that the higher highs are not super high. They don’t convincingly break the previous highs. And the same thing with the lows. They’re just kind of grinding up.”
Ethereum is trading for $1,849 at time of writing, down 0.1% in the last 24 hours.
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