The cryptocurrency analyst who predicted Bitcoin’s 2018 bottom six months ago is now bullish on Ethereum (ETH).
The analyst, known by the pseudonym Blunts, told his 273,300 followers on social media platform X that ETH may be at its lowest price in six months now, after hitting a six-month low in August.
According to the trader, Ethereum is currently on the verge of reclaiming its range, with an upper limit of around $2,850.
Blunts also says that Ethereum shows a bullish divergence on a 3-day timeframe when paired with Bitcoin (BTC). A bullish divergence occurs when the price of an asset makes lower highs while a momentum oscillator, such as the Relative Strength Index (RSI), makes higher lows.
Using Elliott Wave Theory, Blunts seems to suggest that Ethereum is forming a five-wave pattern on a 4-hour time frame. Elliott Wave Theory states that the main trend of an asset moves in a five-wave pattern, while corrections occur in a three-wave pattern.
Looking at the chart, Blunts seems to be suggesting that Ethereum could rally to $3,400 in the coming days.
At the time of writing, Ethereum is trading at $2,562 and ETH/BTC is trading at 0.04256 BTC.
According to the anonymous analyst, another reason for the bullish outlook for Ethereum is the fact that Solana (SOL) is declining compared to ETH.
“I think Solana/Ethereum will also crash soon.”
At the time of writing, SOL/ETH is trading at 0.05727 ETH ($146).
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