A closely-watched analyst offers his views on Ethereum (ETH) and two of its biggest rivals as digital asset markets rebound again.
“Concretely, the breakout is important, but if it fails, it bodes very badly for the market in general. We think a similar statement can be made in this case, i.e. if the breakout fails and Ethereum/Dollar closes back below the $1200 area, that would be a bad sign. Escapes are good until they’re not.
Supporting a bullish thesis for Ethereum, Cred claims that ETH’s Bitcoin pair (ETH/BTC) has a “bullish price structure” that could bode well for the second-largest crypto asset by market capitalization.
Cred also has its eye on Ethereum rival Solana (FLOOR). The analyst says that while SOL and other altcoins have shown considerable strength, Solana bulls might be better off waiting for a pullback.
“By definition, this is one of the best areas for profit taking and one of the least attractive for new long positioning. Last week saw a strong rally led by altcoin and those rallies have now reached key inflection points in many charts.
Conservatively… the best long setup would be either some kind of higher low pullback or, more convincingly, a strong continuation through these inflection points. Buying the first fresh resistance test because the market has risen a lot is not our preferred setup, especially if waiting a week (at most) will likely give a much greater sense of direction.
Companion challenger Ethereum Avalanche (AVAX) also faces a wall of resistance, according to Cred. The analyst says he would rather wait for a convincing recovery of the $25 level before turning more bullish on AVAX.
“The logic here is very similar to the section on Solana: new resistance test, poor contextual zone for new long positioning, and probably worth waiting a week (at most) for a recovery pattern to form or for the resistance to do its job. There’s a recurring theme here: the very “easy” part of altcoin bounces is mostly done and prices have now reached trickier areas in the form of key weekly resistance levels.
Cred says that ultimately a breakout for Bitcoin (BTC) at around $30,000 would be a key catalyst for altcoin markets.
At the time of writing, BTC is trading at $23,265, up 15% in the past seven days.
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