A top trader is mapping out Ethereum’s path ahead, predicting that the asset will follow in Cardano’s footsteps.
In a series of tweets, pseudonymous crypto trader Capo notes that Cardano (ADA) recently retraced against Bitcoin (BTC), indicating that a similar move could be in store for Ethereum (ETH), the second-largest asset by market cap.
Cardano’s retrace, in Capo’s opinion, signals that Ethereum will also fall sharply against Bitcoin heading into September before taking off.
“Could be a quick dump + bounce afterwards.”
Capo’s prediction suggests that the price of Ethereum could once again fall below $2,000 at the beginning of August, provided the price of BTC remains at around $40,000.
Capo also suggests that if the flagship cryptocurrency solidly flips $40,000/$41,000 into support, it is destined to hit $100,000 or more.
“$40,000-41,000 is major resistance for BTC.
1) Wait for a clean break + retest of this level
2) Wait for a correction in 3 waves
When it consolidates above the range high, $100,000+ will be inevitable.”
Bitcoin has jumped nearly 25% in the past seven days, up from a low of $31,783 to $39,706 at time of writing. On Wednesday, Bitcoin’s price action circled $40,000, prompting a bullish tweet from Capo, who indicates that the top cryptocurrency is showing bullish signs.
“First bullish confirmation. I will add leverage when it consolidates above the range high (last bullish confirmation).”
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Featured Image: Shutterstock/Tithi Luadthong
