A closely followed crypto trader and analyst is working out what could happen to Ethereum if ETH fails to hold support at the $4,000 level.
In a new TechnicalRoundup strategy session, the pseudonymous analyst known as Cred takes a look at Ethereum’s recent break above the $4,000 level to see if it’s convincing enough to take ETH into price discovery.
Considering the possibility of a failed ETH breakout, Cred is identifying potential areas where the leading smart contract platform could build a bullish higher low setup.
“If this breakout sticks, awesome, because at that point [it’s at] all-time high above weekly resistance, breakout, nothing left…That’s good. If it doesn’t stick, I think there’s a really clear and really good support…in the low to mid $3,000s, around the $3,000 handle…
In terms of candidates for higher low areas, this has got to be it, because there’s nothing else.”
The crypto analyst gives his general outlook on Ethereum moving into the coming weeks and months. According to Cred, how ETH reacts to the $4,000 and $3,000 leves may determine whether the leading smart contract platform can grind higher.
“Long story short for ETH: above $4,000, up. If it’s below $4,000, down in the short term but still macro up as long as $3,000 holds. I think below $3,000 then it just completely changes the picture whereby you’ve got a failed range breakout of a multi-month range and then a breach of support which threatens [the] weekly market structure. That’s actually one of the worst looking charts you can come up with.”
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