A widely followed crypto analyst says he is still “cautiously bearish” on the crypto markets as long as Bitcoin (BTC) remains below $29,000.
Looking at Ethereum (ETH), trader Justin Bennett says the leading smart contract platform could quickly and briefly pump to nearly $1,900.
“We also saw Ethereum testing the September 2021 trend line at $1,680 on Monday, a must-hold level for bulls.
So we have a well-defined ETH range between $1,715 and $1,840.
Given this range and the short liquidations that have developed at $1,870, I wouldn’t be surprised to see a quick pump above range highs to flush shorts.”
The trader also says that ETH’s immediate future depends on how it reacts to the $1,840 price level.
“Liquidation clusters like the one above often act as magnets, especially in ranging markets.
Whether that becomes a deviation or not will depend on how ETH reacts to $1,840.
If we see a break and hold above $1,840, the $2,030 resistance could be next.
Of course, a break above $1,840, followed by a close back below, would confirm a bearish deviation and likely send ETH back to $1,700.”
Bennett also advises traders to watch ETH at the micro-range of $1,785-$1,790.
“ETH reclaimed the level as support on Wednesday, so any higher time frame close below would set up a minor deviation for a move back to $1,715.”
ETH is worth $1,788 at time of writing, up 3% on the day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney