Crypto analyst Justin Bennett is saying the direction of Cardano (ADA) and Ethereum’s (ETH) price will likely depend on whether Bitcoin (BTC) exhibits bullish or bearish behavior.
In a new issue of the Cryptocademy newsletter, Bennett says that Ethereum’s support at the $4,200 level is currently holding well.
The second-largest crypto asset could appreciate further depending on Bitcoin’s next moves, according to Bennett.
“[Bouncing off the $4,200 level] could open the door to higher levels like $4,600. Just keep in mind that it depends on what BTC does if it reaches the $53,000 resistance area.”
Ethereum is trading at $4,315 at the time of writing.
The crypto trader points to the smart contract platform Cardano currently enjoying strong support at the $1.35 level. According to Bennett, if Cardano rises above $1.50 it would indicate more upside potential while falling under $1.35 would be bearish.
“Cardano has reached an interesting place on the chart. There’s a confluence of support near $1.35 that’s currently holding on a daily closing basis.
We’ll see if that continues. As we all know, it’ll likely depend on whether or not Bitcoin can get back above $53,000.
A close above $1.50 would signal strength and expose $1.70 while a close below the $1.35 area would suggest further downside.”
Cardano is trading at $1.37 at the time of writing.
Bennett says that after falling by over 20% in a span of hours about a week ago, Bitcoin has made an “impressive recovery.” The crypto trader says that unless Bitcoin rises above $53,000, the recovery recorded so far is “just a relief rally.”
Bitcoin is trading at $49,340 at the time of writing.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, 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 loses 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/Agor2012
