An analyst known for making timely crypto calls believes that Ethereum (ETH) is at a pivotal point as it hovers close to $3,000.
Pseudonymous trader Credible tells his 459,900 followers on the social media platform X that Ethereum may be in the midst of carving a local bottom before igniting fresh rallies.
According to the analyst, Ethereum bulls should hold ETH’s immediate support at around $3,000 otherwise the leading smart contract protocol could plunge to below $2,800.
“Here we are.
The first of two levels that I believe will mark our bottom on ETH.
Moment of truth here, let’s see if it holds.
If it’s lost, then we hit the monthly demand below which should mark our HTF (high time frame) bottom.
Many other coins also hitting key/pivotal levels right now.”
Source: Credible/X
Looking at the trader’s chart, he seems to predict that ETH could rally above $4,000 after bottoming out. At time of writing, ETH is worth $3,170.
Turning to Bitcoin, the analyst thinks that the current BTC correction is a positive rather than a negative for the crypto king. According to Credible, the retracement is setting the stage for a potential Bitcoin short squeeze.
A short squeeze occurs when a sharp rise in the price of an asset forces traders who had previously sold short to close their positions, fueling more rallies. Short selling means selling borrowed shares of a stock with the expectation that the price will fall.
Says Credible,
“BTC is simply heading down to one end of our range that we’ve been trapped in for the last week, nothing to be freaking out about.
In fact, I’m glad we’re going for the lows first because it’s healthier for us to take liquidity from the lows of this range while leaving liquidity behind at the highs.
Eyes on the range lows to see if this is just a liquidity grab at one end of the range before going for the other…”
Source: Credible/X
While Credible believes BTC is positioned to spark a short-term rally, he predicts that Bitcoin may witness one more leg down after the surge before launching a parabolic upside move en route to $150,000.
“In a perfect world…”
Source: Credible/X
At time of writing, Bitcoin is trading for $102,080.
Generated Image: Midjourney
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