Closely followed crypto strategist Justin Bennettbelieves that the leading smart contract platform Ethereum (ETH) is poised for a breakout this month.
In a new YouTube video, Bennett EthereumHe thinks that , is facing a diagonal resistance that has kept the market in a downtrend for about four months.
“We have a trend line extending from the November peak. Since then, Ethereum has made lower highs. It has not been able to reach the higher high (new high peak) since the end of last year.”
While Bennett doesn’t ignore the diagonal resistance ahead of Ethereum, he says that the second largest altcoin by market cap is supported by a bullish streak going into 2020.
“At first glance, this low seems to extend from this January low… However, if you go further back, this level actually extends to 2020… This level extends from the February 2020 high just before the March Covid sales.… August [2020]that there is resistance at and then right here without breaking [Kasım 2020] You can see that before.
[2020] During the last part of the bear market for Ethereum, this level was resistance. Fast forward to today and you can see where this level has served as support so far in the last few months, 2022.”
According to Bennett, Ethereum is now trading within a symmetrical triangle pattern and ETH is approaching the top of the pattern.
The crypto analyst says he expects the smart contract platform to exit said model this month. However, he stresses that the breakout could go either way, as he says Ethereum has yet to provide clues for a clear direction to emerge.
“At the moment, this is still a game in progress because at the moment the market is still consolidating… So to somehow confirm the breakout, we need to see Ethereum close right here above this level, so this trendline is around $2,800. Or we should see a daily close around $2,500 below this area.”
If the bulls break the diagonal resistance, Bennett’s target is ETH. 3,600 says the dollar is critical resistance. On the other hand, a break of long-term support will likely derail Ethereum. 1,700 will drop to dollars.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.