Crypto analyst Justin Bennett says he expects the entire altcoin market to struggle until Ethereum gives them the signal they need.
In a new strategy session, Bennett says he sees a trend in Ethereum dating all the way back to November of 2020 that could decide the fate of altcoins.
“I don’t often peg the direction of a market on a single level. However, I’m willing to make an exception in the case of Ethereum. There’s an ETH/USD trend line that dates back to November of last year that is paramount for altcoins. As long as the market falters at this level, the entire crypto market will remain stagnant and vulnerable…
I haven’t seen anyone talking about this trend line on ETH/USD, but it’s single-handedly holding the market down.”
Bennett says that Ethereum must reclaim the $2,430 level in order for ETH and the rest of the altcoin market to move higher. Otherwise, another phase of weakness will be in the cards.
“Until then, expect cryptos to struggle. Last but not least, there’s also a short-term trend line support near $2,300. If that level fails, we could see ETH/USD rotate lower to test $2,000 and perhaps even $1,700.”
Though he sees potential further downside for altcoins should ETH succumb to this trend line, the popular crypto analyst says that breaking above it could imply major rallies in the longer term. He suggests that if the crypto markets are in the middle of a long bull market rather than the start of a bear market, Ethereum could be well on its way to $10,000 sometime in 2022.
“It doesn’t mean the market can’t break above it.
Also, that trend line would allow ETH to move well north of $10,000 if this cycle does, in fact, extend into 2022.”
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