Closely followed cryptocurrency analyst Justin Bennett believes the leading smart contract platform Ethereum (ETH) is poised for an exit this month.
In a recent strategy session, Bennett says that Ethereum is facing cross-resistance that has kept the market in a downtrend for about four months.
“We have a trend line extending from the November peak. Since this time, Ethereum has made lower highs. It has not been able to reach a higher level since the end of last year.”
Ethereum continues to respect its cross resistance, but Bennett says that the second largest altcoin by market cap is supported by a bullish streak going into 2020.
“At first glance, this low seems to extend from this January low… However, if you go back, this level actually extends into 2020. Once upon a time in August[2020]You can see that there was resistance in , and then it happened right here before it broke [November 2020].[2020] During the last part of the bear market for Ethereum, this level was resistance. Fast forward to today and you can see where this level has served as support so far in the last few months, 2022.” According to
Bennett, Ethereum is now trading within a symmetrical triangle and ETH is approaching the top of the pattern. The crypto analyst says he expects the smart contract platform to come out of the mold this month.
However, he stresses that the breakout could go either way, as he says Ethereum has yet to provide clues for a clear directional bias.
“At the moment, this is still a pending game because at the moment the market is still caught in consolidation… So to confirm a breakout one way or another, we need to see Ethereum close here above this level, so this is the trendline is around $2800. Or look for a daily close below this area around $2500.”
If the bulls break the diagonal resistance, Bennett says the target is ETH’s $3600 resistance. On the other hand, a break of the long-term support will likely drop Ethereum to $1700.
“Basically, we can say that Ethereum is set for a 30% move higher or lower. The key is to wait for that confirmation.”
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