A widely followed cryptocurrency analyst and trader believes Ethereum (ETH) is on the verge of a massive breakout.
Michaël van de Poppe tells his 691,900 followers on the social media platform X that there are three main reasons why he believes ETH could soon soar by more than 70% from its current value.
He thinks the finalization of ETH’s next major upgrade called Dencun will help boost the network’s value. Dencun aims to decrease ETH’s transaction costs for layer-2 projects and address scalability issues.
Other catalysts, according to the trader, are the possibility of spot exchange-traded funds (ETFs) for ETH and the funneling of Bitcoin (BTC) profits into ETH after the crypto king’s April halving event, when miners’ rewards are cut in half.
“Ethereum is still ready for $3,500-4,000 in the coming three-six months.
- Dencun upgrade with the final testnet February 7th.
- Ethereum spot ETF hype.
- Bitcoin rotation after halving towards the rest of the ecosystem.”
Looking at his chart, the trader suggests Ethereum is printing a bullish pattern of higher low prices and is on the verge of possibly flipping the key level of $2,336 into support.
Ethereum is trading for $2,309 at time of writing.
Next up, the trader predicts Bitcoin will rally up to $51,000 before the halving and then correct to the low $40,000 range.
“Bitcoin consolidating and acting in a boring manner. Probably it will look for a higher low after which we’re having a slight pre-halving push to $48,000-$51,000.”
Bitcoin is trading at $43,357 at time of writing, up more than 2% in the last 24 hours.
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