Ethereum’s Potential Rally
Renowned analyst Josh Olszewicz suggests that Ethereum might experience a significant rally in the coming months, based on historical patterns.
Key Points:
- Ethereum is currently forming an ascending triangle pattern, which has historically been a bullish sign.
- Descending volume further supports the bullish bias.
- Psychological resistance at $2,000 could act as a signal for a breakout.
- Olszewicz draws parallels from Bitcoin’s past, where similar patterns led to surges towards Fibonacci extension levels.
- Ethereum has the potential to reach the 2.618 Fibonacci extension level, translating to a price of $3,800.
ETH vs. BTC: Better Trade?
Ethereum has underperformed Bitcoin year-to-date due to the ETF narrative and Bitcoin’s dominance as hard money. Olszewicz suggests that the better trade may continue to be BTC/USD, especially with initial spot ETF inflows favoring Bitcoin. However, if the ETH/BTC pair can break and sustain new highs, it might indicate a runaway trade for Ethereum.
Potential Bearish Scenarios
Olszewicz highlights certain bearish ETH/BTC levels to watch, including the current local low at 0.050 and the previous inverse head and shoulders neckline at 0.039. He also suggests a potential move to $42,000 for Bitcoin if certain bullish conditions are maintained.
Hot Take:
Olszewicz envisions a dream trade where Bitcoin breaks bullish first, leading to profit taking rotation from Bitcoin to Ethereum. However, he cautions that without inflows, the market won’t move.
By
By
By
By
By