An analyst who accurately called Bitcoin’s (BTC) price floor for 2018 thinks rallies are in sight for Ethereum (ETH) and its rival Solana (SOL).
Looking first at Ethereum, pseudonymous trader Bluntz tells his 226,200 followers on social media platform
According to the analyst, ETH also showed a bullish divergence on the 30-minute chart, indicating momentum is building for the leading smart contract platform.
“Even though ETH has been the bane of my existence because ETH/BTC has been a perpetual bag of sh*t, I still think there is a nice flat setup here on the USD pair with five waves down now and a nice low time frame divergence to confirm this.
I think the dip is over and we can at least reach a high above $1,880 from here.”
Bluntz practices Elliott Wave theory, a method of technical analysis that attempts to predict future price action by identifying crowd psychology that often manifests itself in waves. Looking at the trader’s chart, he seems to predict that ETH will rise above $1,900 in the near term.
At the time of writing, Ethereum is worth $1,850.
Next up is Solana, which the trader thinks has more gas left in the tank, even though the price is already up about 338% this year.
“18% three-wave pullback in a monstrous uptrend, yes, please. This goes straight to $50+.”
At the time of writing, SOL is worth $42.
Bluntz also monitors the performance of the US Dollar Index (DXY), which tracks the value of the USD against a basket of foreign currencies. According to the analyst, risky assets like crypto could see upside as he believes the DXY is headed for a significant correction.
“DXY is now really back in the high time frame.
Risk bitches, let’s go!
Based on the trader’s chart, he seems to predict that the DXY could fall below the key 100-point support level.
At the time of writing, the DXY is trading at 105,069 points.
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Generated image: Midjourney
