A widely followed crypto analyst says Ethereum (ETH) looks primed to move higher after exhibiting price stability during the last two weeks.
In a new strategy session, pseudonymous crypto trader Rekt Capital tells his 519,700 followers on the social media platform X that ETH may be gearing up for more rallies after maintaining $4,000 as support on the weekly chart.
“ETH: the post-breakout retest was successful. And indeed, it enabled a challenge into $4,000 (red). In fact, Ethereum has been holding the $4,000 (red) area as new support for the second week in a row. Continued price stability here [means] renewed upside.”
Source: Rekt Capital/X
Looking at his chart, the trader suggests that ETH may soon rally to $4,542.
Ethereum is trading for $3,956 at time of writing, up nearly 28% in the last 30 days.
However, the analyst says that Bitcoin (BTC) may continue to outperform altcoins now that Bitcoin dominance (BTC.D) – the ratio between the market cap of BTC versus the market cap of all crypto assets combined – is rising again.
At time of writing, BTC.D is at 57.80%.
“Bitcoin dominance: sharp rebound to the upside for BTC.D. A reclaim of green 57.68% as support would allow for Bitcoin dominance to regain momentum in its macro uptrend. BTC.D is on the cusp of reclaiming this level as we speak to confirm ‘Bitcoin Season.’”
Source: Rekt Capital/X
Lastly, the analyst warns that based on historic precedence Bitcoin could soon see a sudden correction before rallying again.
“It’s week seven. In 2013, Bitcoin pulled back in week seven of price discovery. In 2017, Bitcoin retraced -34% in week eight of price discovery. In 2021, Bitcoin pulled back -16% in week six. Will history repeat? Or will Bitcoin go against the grain of history?…
Price discovery corrections are a normal part of the BTC cycle. And every cycle has experienced them. Especially since Bitcoin has already experienced multiple -25% pullbacks in and around the halving.”
Bitcoin is trading for $106,972 at time of writing, up more than 18% in the last 30 days.
Generated Image: DALLE3
