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Ethereum support sets up for 12K, according to crypto strategist Ben Armstrong

The popular analyst Ben Armstrong shares with his subscribers his bullish optimism on Ethereum (ETH) and defines ETH price catalysts that would pump ETH to price discovery path.

According to the trader, Ether has gained 350% this year versus Bitcoin’s 60% advance. In particular, ETH has banked 36% returns in August alone.

Although in May, after reaching its all-time high of $4,357, ETH immediately fell back to $1,700 level, the trader believes that this time ETH won’t be immediately crashing once it surpass the $4,300 level.

It could take longer than nine days to surpass the previous all-time high, but at least now we will have stronger support,”

Moreover, the trader points out that with 11.7 million Ethereum were bought between $3,120 and $3,226, ETH has a pretty epic zone of price support. Yet, he warns that there could be a slight pullback before reaching price discovery.

Armstrong also list out strong fundamental factors that contribute to ETH’s new higher lows include increased usage of DeFi, the rise of layer 2 solutions, and the transition to proof-of-stake consensus.

EIP-1559, simply put, burns the gas fees for transactions rather than giving the gas to the miners. This decreases the selling pressure from the miner selling as well as decreases the circulating supply. This, as well as the supply shock on exchanges, consequently causes the price to go up.”

He adds:


“Since the release of EIP-1559, Ethereum has been gaining some serious steam with over 166,000 ETH already burned, combined with a supply shock on exchanges, celebrity hype and over a billion dollars in NFT sales. All factors have together contribute to ETH recent rally.”

At the end of the video, the trader shares his bullish on Ethereum for the last 3 months of 2021. With the supply burning more and more every day, along with institutional money and retail investors still jumping on the train every time it stops, he believes that Ethereum will land somewhere between $9,000 and $12,000 before the bulls drop off the cliff and the bear market officially starts.

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