An analyst who accurately called the 2018 floor price for Bitcoin (BTC) thinks rallies are in sight for Ethereum (ETH) and its rival Solana (SOL).
Looking at Ethereum first, pseudonymous trader Bluntz tells his 226,200 followers on the social media platform X that ETH appears to have completed a corrective move on the lower time frame chart.
According to the analyst, ETH also flashed a bullish divergence on the 30-minute chart, indicating that momentum is building up 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’s a nice flat setup here on the USD pair with five-wave down now done and a nice low time frame divergence to confirm it.
I think ‘the dip’ is done and we at least go for one more high above $1,880 from here.”
Bluntz practices the Elliott Wave theory, a method of technical analysis that attempts to predict future price action by identifying crowd psychology which tends to manifest in waves. Looking at the trader’s chart, he appears to predict that ETH will rally above $1,900 in the short term.
At 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 it’s already up about 338% this year.
“18% three-wave pullback in a monster uptrend, yes, please. This is going straight to $50+.”
At time of writing, SOL is worth $42.
Bluntz is also watching the performance of the US dollar index (DXY), which keeps track of the USD’s value compared to a basket of foreign currencies. According to the analyst, risk-on assets like crypto may see upside moves as he believes the DXY is set for a significant correction.
“DXY now well and truly back in the high time frame range.
Risk on b***hes, lets go!”
Based on the trader’s chart, he seems to predict that the DXY could fall below the key support level of 100 points.
At time of writing, the DXY is trading at 105.069 points.
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Generated Image: Midjourney
