A prominent analyst within the crypto community suggested that Ethereum’s price action seems to resemble the way Bitcoin was behaving between 2015 and 2018. Under such circumstances, the chartist implied that ETH can surge up to 63x in its next bull run.
The smart contracts giant could have the ability to peak at a high of $13,000 if this scenario were to become true.
The unpredictability of the cryptocurrency market makes it impossible to determine what the long-term future holds for Ethereum. However, another renowned technical analyst argued that in the near term this altcoin is bound for a steep correction.
— Wolf (@IamCryptoWolf) May 4, 2020
Raising the Stakes
Crypto enthusiasts appear to be growing overwhelmingly bullish about Bitcoin’s halving. Many see the block rewards reduction event as the catalyst that can push the flagship cryptocurrency into a full blown bull market. And, there is a certain level of truth to it.
Plan B built a mathematical model dubbed stock-to-flow (S2F) that suggests that Bitcoin’s scarcity is highly correlated with the value of the network. Under this premise, the S2F has been able to accurately predict the trajectory of BTC’s price action over the years.
Now that Bitcoin’s rate of issuance will soon drop by 50%, the S2F projects a market value increase of 10x. With a market cap of $1 trillion, BTC’s price will be hovering around $55,000, according to Plan B. But, that is not all.
The significant reduction in the rate of inflation makes the S2F predict that the bellwether cryptocurrency will hit $95,000 sometime next year.
A $95,000 Bitcooin makes Wolf’s bullish scenario for Ethereum reachable in the long-run. However, another renowned technical analyst argues that Ether is far from entering its next bull cycle.
A Steep Decline on Ethereum’s Horizon
Trading afficionado DonAlt maintains that even if Bitcoin enters a bull market, he doubts that Ethereum could follow. The analyst believes that the different resistance levels ahead of ETH are so significant they cannot break easily. Thus, they could continue to hold and put a stop to the smart contracts giant’s uprising.
The massive supply wall ahead of Ethereum sits between $200 and $230. If this barrier is indeed able to hold, DonAlt suggested a pullback to support between $150 and $140.
Even if BTC goes and mega moons I heavily doubt ETH will take part in it.
If we get any kind of halving related crazy spike up or weakness this week, I'm gonna look for ETH shorts.
Feels much comfier now that it's at HTF resistance. pic.twitter.com/cOY5LE2cPo
— DonAlt (@CryptoDonAlt) May 4, 2020
On the flip side, the prominent chartist said that the trading pair ETH/BTC does not look as “terrible” as the ETH/USD pair.
Emotions around market participants are running high as the halving approaches. While many have warned that a steep decline is underway, there are those who argue that this event represents a pivotal point for the industry as a whole.
Whether bullish or bearish, it is always important to have a solid risk management strategy to avoid adverse market conditions.