A popular crypto strategist is issuing an alert to Ethereum traders, saying ETH’s recent rally is not the same as last year’s bull run.
Pseudonymous analyst Rekt tells his 327,800 Twitter followers that while Ethereum managed to stay above support at $1,500, he believes ETH will likely resume its downtrend after a bounce.
“If ETH enjoys stronger follow-through from this recent successful retest of orange support, then ETH will be able to go up and form a macro lower high, much like in early 2021. That lower high would form at ~$1,800.”
A macro lower high indicates that the trend is bearish and that the bounce will likely be short lived.
Rekt also highlights that although ETH is trading between $1,500 and $1,800 just like it did in March 2021, he says the less-than-stellar reaction of ETH bulls at range support shows the difference in trend.
“Compared to early 2021, however, the reaction is not as volatile now. There was no wick into the orange area to demonstrate a strong buy-side reaction.”
Meanwhile, fellow analyst Michaël van de Poppe believes that one catalyst could push ETH above $1,800 and change the prevailing sentiment surrounding the leading smart contract platform.
“Ethereum fork happening on the 6th of September, which increases the odds of The Merge to be a success -> sentiment changing.
The scenario still going as planned. I don’t want it to drop sub $1,350.
If strength continues -> $2,200 next.”
The Merge is Ethereum’s highly anticipated transition from a proof-of-work consensus mechanism to a proof-of-stake one.
At time of writing, ETH is swapping hands for $1,583, flat on the day.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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