Bitcoin and ETH are going higher after a sharp correction this week with declines of 9% and 14%, respectively. In particular, the ETH price has risen to $ 395 from a local low of $ 380.
Although a complete reversal has yet to be realized due to the emergence of this move, analysts are starting to learn about Ethereum. In fact, one analyst believes that ETH will soon reach $ 500 when bulls reaffirm control of the market.
ETH and Bitcoin will soon bounce
The trader who predicted Bitcoin would bottom out at $ 3,200 in the past six months when it happened in the bear market of 2018 is currently bullish on Ethereum.
He shared his chart showing that ETH has formed a “potential ABC,” according to Elliot Wave. Elliot Wave is a form of technical analysis that believes the market moves in predictable waves due to investor sentiment. This ABC can result in a move to $ 490.
“Potential ABC complete on eth 4h. Can see a nice backtest of triangle breakout and would not be surprised to see a new high from here while everyone is now bearish. Still hands down the strongest of the majors.”
potential abc complete on $eth 4h.
can see a nice backtest of triangle breakout and would not be surprised to see a new high from here while everyone is now bearish.
still hands down the strongest of the majors imo pic.twitter.com/KKKvQoRWxG
— ??Farmer Bluntz?? (@SmartContracter) August 22, 2020
The trader is also optimistic about Bitcoin’s outlook.
“BTC is looking pretty bang average here, this is still my core scenario, and the good news is there’s a lot of support at 11.3k and 11k, these are areas I will be buying, I do not think this run is over yet; however, there are probably still some breakout buyers yet to be shaken out.”
$btc is looking pretty bang average here, this is still my core scenario and the good news is ther’s alot of support at 11.3k and 11k, these are areas i will be buying, i do not think this run is over yet, however there are probably still some breakout buyers yet to be shaken out pic.twitter.com/PCyaQ21C9x
— ??Farmer Bluntz?? (@SmartContracter) August 21, 2020
In the long run, this analyst expects Bitcoin to move towards a key resistance level of $ 14,000, then towards an all-time high of $ 20,000. He believes this scenario is in line with the Elliot Wave macro setup.
Read more:
- Ethereum price positive reaction to one crucial support level made it could soon be launched up to highs of $ 500
- Bitcoin price may get crushed further as the world’s reserve currency U.S. dollar may be bottoming