A closely followed crypto analyst and trader says that Ethereum (ETH) is holding on to a key support level as Bitcoin (BTC) sets up for imminent price discovery.
The pseudonymous trader known as Pentoshi tells his 337,000 followers that Bitcoin has crucial support in the $58,000 area.
Because BTC maintained that level as the new week began, Pentoshi says Bitcoin is likely ready to make a move toward the $65,000 range and threaten new all-time highs once again.
“BTC continues to hold that important 58k area
Weekly low is likely already in and I’d guess price discovery this week based off that retest we had early.”
Pentoshi also has his eye on Ethereum. The trader takes note of the leading smart contract platform’s trend of net-negative issuance triggered by the London hard fork upgrade. One aspect of the upgrade included implementing a new fee structure that takes a portion of ETH from each transaction fee and burns it.
According to the analyst, the deflationary nature of Ethereum’s tokenomics as of late combined with some bullish price action bodes well for ETH in the near future.
“Most interesting note, it had negative net issuance (truly deflationary) the last 7 days. It still has another halving event in Q1-Q2 via the merge
TA-wise [technical analysis] it retested previous all-time highs and now should be confirmed as support
I got some bids filled with clear invalidation.”
Looking at Ethereum in its Bitcoin pair (ETH/BTC), Pentoshi says ETH has one last resistance to get through before reaching a multi-year high up at the 0.10 ($6,100) level. Based on the analyst’s chart, ETH/BTC could be in for 50% gains should it maintain strength.
“ETH has one last resistance left
It’s held the trendline perfect, as well as the 3-year PoB [proof-of-burn]
Its next independent breakout should send it trending towards .10-11 BTC and price discovery on USD [US dollar] pair.”
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