A widely followed crypto analyst says he is still “cautiously bearish” on the crypto markets as long as Bitcoin (BTC) remains below $29,000.
Looking at Ethereum (ETH), trader Justin Bennett says the leading smart contract platform could quickly and briefly pump to nearly $1,900.
“We also saw Ethereum testing the September 2021 trend line at $1,680 on Monday, a must-hold level for bulls.
So we have a well-defined ETH range between $1,715 and $1,840.
Given this range and the short liquidations that have developed at $1,870, I wouldn’t be surprised to see a quick pump above range highs to flush shorts.”
The trader also says that ETH’s immediate future depends on how it reacts to the $1,840 price level.
“Liquidation clusters like the one above often act as magnets, especially in ranging markets.
Whether that becomes a deviation or not will depend on how ETH reacts to $1,840.
If we see a break and hold above $1,840, the $2,030 resistance could be next.
Of course, a break above $1,840, followed by a close back below, would confirm a bearish deviation and likely send ETH back to $1,700.”
Bennett also advises traders to watch ETH at the micro-range of $1,785-$1,790.
“ETH reclaimed the level as support on Wednesday, so any higher time frame close below would set up a minor deviation for a move back to $1,715.”
ETH is worth $1,788 at time of writing, up 3% on the day.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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