A prominent analyst is studying historical trends in Bitcoin as well as the US stock market to determine
Strategist Benjamin Cowen just revealed when ETH could rally back to ATH $4,865.
In one strategy session Newly, Cowen says ETH has been trading in a broad range of $2,000 to $4,000 since early 2021.
Source: Benjamin Cowen
The analyst argues that expanded ETH consolidation is not out of the question.
“You also have to remember that volatility is normal for an asset class that can deliver a 40x return in about a year. If we get to 40x in a year and then need to consolidate for a while, those consolidation periods can often be lengthy.”
Cowen is referring to ETH’s massive rally from March 2020 to May 2021, when the leading smart contract platform surged from around $100 to over $4,000.
The strategist also said that the current price action of the largest post-cap altcoin is similar to its market structure in 2016, which also consolidated for almost a year before triggering a parabolic surge.
Using ETH’s 2016 market structure to create a roadmap for the future, Cowen forecasts a rally to all-time highs before the end of the first half of 2022.
In terms of quality, there are still many similarities between what happened at ETH back then and what is happening today. Now, I don’t expect the price to jump 200x from this point, even if it turns out to be just a long sideways consolidation as it was the case last time. The price went from $7 to $1,400 in a relatively short period of time. I was not expecting that.
But what I would expect is if so what does it mean? That means we still have a long way to go. If it took until May to return to the previous all-time high, many people would very much welcome ETH at that point if it returns to its previous ATH before May.”
ETH rejected at key support 2.8th00 dollar
ETH’s rally may be short-lived as the price touches $2,800. Now the buyers are on the defensive trying to prevent further declines.
Major support levels: $2,550, $2,200.
Key resistance levels: $2,800, $3,000.
Despite ETH’s worthy attempt to move higher, sellers held onto the $2,800 resistance level, rejecting the price and pushing it into a pullback.
Buyers need to defend the $2,500 support to avoid further losses if the next critical support is found at $2,200. So the current support holds for the long term and this could be an expected pullback after the 30% rally.
The source: trading view
Trading Volume: Although the price dropped, the sales volume was still weak. This gives the bulls a good chance to defend ETH at $2,500.
RSI: After making a higher high, the RSI turned down due to a rejection at the resistance level. However, this retracement could be temporary, especially if the RSI makes a higher low.
MACD: The daily MACD remains bullish even as the histogram makes a lower high. Bears need to push ETH below $2,500 to challenge the recent upside.
The source: trading view
The current trend for ETH is neutral. Buyer strength is fading as the price approaches $2,800. Therefore, ETH could consolidate in the range before a new trend emerges.
Short-term price prediction for ETH
ETH failed to break the critical resistance at $2,800 and fell back to the key support at $2,500. Given the volume profile, sellers may not be too keen on pushing the price down much. Because of this, the price may consolidate in this range between the key levels.
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According to AZCoin News