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.
Generated Image: DALLE3
