- Ethereum (ETH) whales have increased transaction activities as analysts predict an end of the long correction.
- Ali Martinez has also predicted that ETH could follow in the footsteps of the S&P 500 to hit $10k by the end of the cycle.
Ethereum (ETH) declines by 2.5% on the weekly chart following the recent attempt by Bitcoin (BTC) to breach its $93k all-time high. However, a renowned analyst has predicted that the asset could bounce back stronger. According to analyst Ali Martinez, ETH could outpace Bitcoin’s rally to hit $10k if it imitates historical market behavior.
In his thesis, the analyst pointed out that ETH has outperformed BTC in each previous cycle. However, this is yet to be seen in the current stage.
Every market cycle has experienced a phase where Ethereum outperforms Bitcoin. That hasn’t happened yet in the current cycle, but it is certainly on the horizon.
Explaining this further, Martinez pointed out in a price chart that ETH is forming an ascending channel pattern, which could position the asset at $4000. Also, a successful breach of this level could send the price to $6000.
Looking into market indicators, we discovered that the Relative Strength Index (RSI) had receded to 50 from the overbought territory. Similarly, the Awesome Oscillator (AO) was showing a red receding histogram to almost the mean level of 0. Based on our analysts’ interpretation, these are bullish signals. However, additional receding of both indicators could drag the asset back to its nearest support level of $2,780. Meanwhile, Martinez believes that there is a high possibility of ETH mirroring the price action of the S&P 500.
Another Analyst Speaks on Ethereum (ETH)
Subjecting the asset to further analysis, another Analyst identified as IamCryptoWolf has disclosed that Ethereum could finish the year with $4000. According to him, ETH has built a strong momentum for more than two years now and could take a significant leap when it begins to set off.
ETH has been building solid momentum with higher lows over the past 2.5 years. Yes, it’s moving slowly, but building momentum takes time. Once it clears 4k, it’s off to the races. 10k is the target.
Amidst the backdrop of this bullish “charge”, smart money investors have begun to aggressively acquire the asset. Recently, wallet addresses belonging to four whales withdrew 12,499 ETH ($40 million) from Binance.
Currently, ETH’s futures Open Interest (OI) has experienced a significant uptick of 20%, reaching $16.18 billion from the $13.05 billion recorded in the last two days. According to our analysts, OI is used to measure the number of outstanding contracts in the derivative market. In situations where the OI surges with the price, it implies that fresh funds are entering the market to fuel growth. Based on this, a continuous growth of the ETH’s OI would propel the price to a new height.
For crypto analyst Javon Marks, Bitcoin’s dominance has peaked, and altcoins led by Ethereum could become the center of attraction for the new phase of price rally.
Meanwhile, Michael van de Poppe also believes that ETH is at the end stage of its corrections.
#Ethereum is at the end stage of the correction.
There’s around 10% more to be going down on it, as then we’re reaching a higher timeframe support level.
The good times are there in a few weeks time. pic.twitter.com/21mZeSUAxx— Michaël van de Poppe (@CryptoMichNL) May 15, 2024
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