A closely followed crypto analyst is revealing two bullish scenarios that would lead the top smart contract platform Ethereum (ETH) to a price tag of $6,000.
In a new strategy session on the TechnicalRoundup podcast, pseudonymous crypto trader DonAlt says the best-case scenarios for ETH right now are trading sideways or ripping up to new highs before pulling back.
-->“I would much rather have this basically go sideways here, or just like either rip like completely just go up and then pull back from much higher.
Basically, you go towards $6,000 and then you pull back from $6,000 to $4,000. That’d be much more fun and much more constructive than pulling back now or just going sideways here in this range… If it’s bullish, I think it should do one or the other, basically either sideways here without retesting $2,900 or $2,800.”
But DonAlt warns that from a technical standpoint, Ethereum has gone up so fast without a significant retracement, opening the door for a deep corrective move. If that happens, the trader says that ETH’s uptrend will likely be reversed.
“Whenever I’m looking for these kinds of pullback levels, sometimes I go on the lower time frames. So, for example, the daily time frame. You open that up, and you look ‘Hey, okay, we kind of haven’t had a pullback at all. We had some sideways [movement]. We had a little bit of a false range breakdown.
But since then, basically since $2,000, we haven’t had a pullback. We almost went straight to $4,000, right? So we basically almost doubled. So I think there is a world in which if something macro-wise goes wrong, we pull back to like $2,900, maybe $2,800.
But I would prefer not to. But I would prefer not to. Generally, I think that would oftentimes be a sign of weakness and that this isn’t going to be sustained.”
Ethereum is trading for $3,778 at time of writing, a 5.4 gain during the last day.
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