ETheum (ETH) and Bitcoin (BTC), which are driving the rally in the cryptocurrency market, are back in the green, as are most altcoins.
The second-largest cryptocurrency by market capitalization has seen bullish momentum, rising 27% in the previous week and 13% in the past 24 hours.
Leading smart contract platform Ethereum, which is beginning to show signs of strength, is gearing up for a significant surge, according to a well-followed crypto analyst. After ETH broke its resistance at $1,281, pseudonymous cryptocurrency strategist Altcoin Sherpa advises that he anticipates a strong increase in Ethereum in the following weeks.
The crypto analyst warns that the gain is unlikely to mark the start of a new bull run, despite its short-term uptrend on the top altcoin.
“Here are some levels. I think we see something like $1700 to $1900 in the coming weeks. This is NOT a macro reversal, in my view, just another bear market rally. Exponential moving averages turned higher on the four-hour chart for the first time since late March.
As of this writing, Ethereum is trading at $1,522. The potential upside for ETH is nearly 40% if the price moves towards Altcoin Sherpa’s target.
What about ETH/BTC?
The cryptocurrency strategist claims that when comparing Ethereum to the most valuable digital asset, Bitcoin (ETH/BTC), the pair also destroyed its immediate resistance, which is good news for altcoins.
The ETH/BTC chart is used by traders to predict the performance of cryptocurrencies against Bitcoin. An ETH/BTC uptrend indicates that altcoins are likely poised to outperform Bitcoin.
And the ETH/BTC pair is currently trading at 0.064 BTC ($1,342), putting it just short of Altcoin Sherpa’s next target of 0.065 BTC ($1,363).
He thinks altcoins will continue to have a brief mini-run if ETH/BTC hits a short-term low. But in his view, this is still not the macro bottom as he expects these short-term bearish rallies to occur periodically.