A popular crypto trader is predicting what needs to happen for Ethereum’s (ETH) price to surge even further.
In the TechnicalRoundup newsletter, the pseudonymous analyst DonAlt says ETH is likely to underperform during a Bitcoin (BTC) breakout but will overperform later if the market rides “a multi-month uptrend.”
“As Bitcoin gets sufficiently pumped (very technical term) risk trickles down to lower market cap assets, including Ethereum.
From a technical point of view, the market is in a range between support (low-mid $3000s) and resistance ($4000).
Given the relative strength of the market and the proximity to new all-time highs, a range breakout is more likely than a range breakdown.
Generally, triple tops aren’t compelling resistance structures, especially those that form at prior all-time highs.”
Ethereum is trading at $4,189 at time of writing, up more than 16% in the past week, according to CoinGecko. The second-biggest crypto asset by market cap hit its all-time high of $4,356 in mid-May.
DonAlt thinks Bitcoin currently offers traders more upside than downside.
“If you long Ethereum and you’re right, you’ll probably make less money than longing Bitcoin. If you long Ethereum and you’re wrong, you’ll probably lose more money than longing Bitcoin.
Our conviction on this isn’t incredibly high, but the likelihood of a Bitcoin-dominant breakout is one worth considering.
In our view, the time to rotate into Ethereum will come once the breakout dust has settled. A large puke in Ethereum/Bitcoin would be a good time to start looking for punts.”
You can read DonAlt’s full TechnicalRoundup newsletter here.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Liu zishan/pikepicture