Bitcoin’s jaw-dropping run over the last few weeks has made many people euphoric. Some are starting to predict that the leading cryptocurrency will hit $60,000 in this bull cycle. Claims like this often signal that a local top is in. If that’s the case, those who took profits at current levels might move their capital to other crypto tokens. A stellar candidate to be the recipient of this capital flow might be Ethereum. It appears that others share this bias.
Analyst Opinion on Ethereum
A popular Elliott Wave technician that goes by the name Benjamin Blunts looked at Ethereum and saw a striking resemblance between its 2017 price action and today’s market structure. On June 15, The Elliottician took to Twitter to illustrate the potential bullish setup of the cryptocurrency.
According to the analyst, Ethereum sparked a massive bull run after it broke out of a symmetrical triangle in 2017. The same setup appears to be in the works, as Benjamin Blunts wrote, “I think I’m having deja-vu here.”
Breakout from the triangle will likely lead to a parabolic rally | Source: Twitter
Another key detail that the analyst saw between the two charts is the declining volume from wave A to the apex of the triangle. Decreasing volume while the market is in consolidation is bullish. It typically indicates that sellers are losing ammunition. Thus, when price contracts at the apex and sellers are drained, demand overwhelms supply to ignite a breakout.
In the tweet, the trader also emphasized that the key level to break is $302. As of this writing, Ethereum is trading above $302. If the analyst is correct, we could expect fireworks soon. Others echo this sentiment.