A popular crypto strategist is issuing an alert to Ethereum traders, saying ETH’s recent rally is not the same as last year’s bull run.
Pseudonymous analyst Rekt tells his 327,800 Twitter followers that if Ethereum managed to stay above support at $1,500, he thinks ETH will likely resume its downtrend after a rebound.
“If ETH benefits from stronger follow-through from this recent successful retest of orange support, then ETH may rise and form a lower macro high, much like in early 2021. This lower high would form at ~$1,800.”
A macro lower high indicates the trend is bearish and the bounce will likely be short-lived.
Rekt also points out that although ETH is trading between $1,500 and $1,800 as it did in March 2021, he says the less than stellar reaction of ETH bulls to range support shows the trend difference.
“Compared to the start of 2021, however, the reaction is not as volatile now. There was no wick in the orange zone to demonstrate a strong buy-side reaction.
Meanwhile, fellow analyst Michaël van de Poppe believes that a catalyst could push ETH above $1,800 and change the prevailing sentiment around the leading smart contract platform.
“The Ethereum fork is happening on September 6, which increases the chances of The Merge being a success -> change in sentiment.
The storyline still unfolds as planned. I don’t want it to fall below $1350.
If strength continues -> $2,200 next.
The merger is Ethereum’s long-awaited transition from a proof-of-work consensus mechanism to a proof-of-stake mechanism.
At the time of writing, ETH is trading hands for $1,583, flat on the day.
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