A veteran crypto analyst says the leading altcoin Ethereum has gone through a ‘significant breakout’. The analyst is also updating the outlook for Solana (SOL) and Avalanche (AVAX).
What are Cred’s expectations for the leading altcoin Ethereum?
A closely-followed analyst is considering Ethereum (ETH) and its two biggest rivals as the crypto markets see a fresh bounce. The analyst, nicknamed Cred, says in his latest TechnicalRoundup newsletter, ETH is back on the job. But he now adds that ETH is at risk of a failed breakout that could signal further downside. In this context, the analyst makes the following statement:
Specifically, refraction is important. But if it fails, this is a very bad omen for the market in general. We think that a similar claim can be made in this case as well. So if the breakout fails and Ethereum bounces back below $1,200, that would be a bad sign. Breaks are fine until they don’t.
Source: TechnicalRoundupHowever, Cred supports a bullish thesis for Ethereum. For this, he says that ETH’s Bitcoin pair (ETH/BTC) has a ‘bullish price structure’ that could bode well for the leading altcoin.
“It is possible that Solana bulls can do better”
Cred also has its eye on top Ethereum competitor Solana (SOL). According to the analyst, SOL and other altcoins showed remarkable strength. However, Cred sees it as possible for Solana bulls to do better than wait for a pullback. It also evaluates:
By definition, this is one of the better areas to make a profit. It’s also one of the less attractive areas for the new long position. Last week saw a strong rally led by the altcoin. These rallies have now reached important turning points on many charts.
Cred prefers to look at it cautiously. “The better long setup would be either some sort of higher low retracement or, more compellingly, a strong continuation from these inflection points,” he says. Continuing with his comment, Cred adds:
Buying the first fresh resistance test is not our preferred setup as the market is so high. In particular, waiting for (at most) a week will probably give a much greater sense of direction.
Source: TechnicalRoundupAnalyst is waiting for this level for AVAX!
According to Cred, Ethereum rival Avalanche (AVAX) is also facing a wall of resistance. The analyst prefers to wait for a convincing retracement of the $25 level before becoming more optimistic about AVAX. The analyst explains his thinking as follows:
The logic here is very similar to the chapter on Solana. New resistance test, weak contextual area for new long, and it’s probably worth waiting a week (at most) for a recovery setup to form or for resistance to do its job. There is a recurring theme here. The ‘very easy’ part of altcoin bounces is mostly done. Prices have now reached more difficult areas in the form of key weekly resistance levels.
Source: TechnicalRoundupCred notes that ultimately a breakout of $30,000 for Bitcoin (BTC) would be a major catalyst for altcoin markets. cryptocoin.com As you follow, Bitcoin had a successful week. At the time of writing, BTC is trading at $23,256, up 19.74% over the past seven days.
