A closely followed crypto analyst says that Ethereum (ETH) will dip down to test its lower boundary before sparking a massive rally to the upside.
In a new strategy session, crypto trader Ali Martinez tells his 127,700 followers on the social media platform X that the second-largest digital asset’s best-case scenario has it testing the $2,300 level as support before skyrocketing 47% past $4,000.
However, Martinez notes that the leading smart contract platform by volume’s worst-case scenario could have it forming a double-top pattern, a bear flag that generally signals the end of a bull market.
“In the best-case scenario, Ethereum is range-bound, meaning it could test $2,300 support before rebounding toward $4,000. However, in the worst-case scenario, this could be shaping up as a double-top pattern.”
Martinez goes on to warn traders that altcoin season could be canceled this time around if Ethereum fails to maintain the $2,600 level. However, he notes that whale activity centered around the top altcoin has risen.
The trader concludes his analysis by saying that if Ethereum were to lose the $2,600 price tag as support, it could crash all the way back down to somewhere between $1,700 and $2,000.
“Ethereum is currently consolidating in a parallel channel… Currently, Ethereum is sitting in the lower support trend line, which is not good. Essentially, losing this level at $2,600 as support could lead to steep correction to $2,000 or even $1,700, which is why no one is buying Ethereum right now.”
Ethereum is trading for $2,720 at time of writing, a fractional increase during the last 24 hours.
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