A widely followed cryptocurrency analyst and trader believes Ethereum (ETH) is on the verge of a massive breakout.
Michael van de Poppe tells his 691,900 followers on the social media platform
He thinks the completion of ETH’s next major upgrade, called Dencun, will help increase the value of the network. Dencun aims to reduce ETH transaction costs for layer 2 projects and address scalability issues.
Other catalysts, according to the trader, include the possibility of spot exchange-traded funds (ETFs) for ETH and the funneling of Bitcoin (BTC) profits to ETH after the crypto king’s halving in April, which halves miners’ rewards.
“Ethereum is still poised for $3,500-4,000 in the next three six months.
- Dencun upgrade with the last testnet on February 7.
- Ethereum spot ETF hype.
- Bitcoin rotation after halving towards the rest of the ecosystem.”
Looking at his chart, the trader suggests that Ethereum is printing a bullish pattern of higher lows and is about to potentially turn the key $2,336 level into support.
Ethereum is trading at $2,309 at the time of writing.
Then the trader predicts Bitcoin will rise to $51,000 before the halving and then correct to the low $40,000 range.
“Bitcoin is consolidating and trading in a boring way. It will likely look for a higher low, after which we have a slight pre-halving push to $48,000-$51,000.”
Bitcoin is trading at $43,357 at the time of writing, up more than 2% in the past 24 hours.
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Generated image: DALLE3