Pseudonymous analyst Smart Contracter tells his 213,900 Twitter followers that Ethereum completed a five-wave rise on the lower timeframe and is now poised for at least a 15% retracement from its recent high.
“I suspect it pulls back about 15%-20% from here peak to trough.”
Smart Contracter is a popular practitioner of the Elliott Wave theory, an advanced technical analysis approach that follows crowd psychology that tends to manifest in waves. According to the theory, assets typically correct after a five-wave rally.
Looking at the analyst’s chart, he sees Ethereum falling back below $1,400 before bouncing toward his target of $1,900.
At time of writing, Ethereum is trading for $1,470, down 3.35% on the day.
The crypto strategist is also keeping an eye on FTX’s Altcoin Index Perpetual Futures chart, which tracks the price of a basket of large-cap crypto assets other than Bitcoin. According to Smart Contracter, the index also completed a five-wave rise and is now setting up for a correction, suggesting that large-cap altcoins are likely headed to lower levels.
“Beautiful 37% rally for alt perp out of that falling wedge but five up on daily now done. So expecting a decent pullback from here. Would be exiting here myself if I was still in and waiting for a decent pullback.”
The crypto strategist also has his radar locked on Ethereum rival Solana (SOL), which he says now looks bearish after its weekly close.
“And this is why I was waiting for the weekly close. All within 24 hours, the SOL/BTC weekly went from looking amazing to absolute garbage.
At time of writing, SOL is valued at $27.19, down over 16% on the day.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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