The founders of crypto analytics platform Glassnode believe Ethereum (ETH) may break out ahead of a possible “super euphoria” crypto phase.
The co-founders of Glassnode, who go by the handle Negentropic on the social media platform X, tell their 63,000 followers that Ethereum against Bitcoin (ETH/BTC) may be printing a bullish reversal pattern.
According to the analysts, the ETH/BTC breakout could signal big gains are in store for alts in June, which has historically been a well-performing month for altcoin projects.
“Looking ahead: altcoin market moves. Despite Ethereum’s price action, JASMY, RLC and PEPE show strong rallies. The ETH/BTC chart suggests a trend reversal as Ethereum outperforms Bitcoin following the ETH exchange-traded fund [19b-4 forms] approval. Historically, June has been favorable for altcoins. Will the trend continue?”
ETH/BTC is trading for 0.0542 BTC ($3,773) at time of writing, down nearly 1% in the past 24 hours.
The analysts suggest that digital assets may soon be soaring to new all-time highs (ATHs) along with the stock price of tech company MicroStrategy due to its large holdings of Bitcoin.
“Opinion: could we be heading towards ‘super euphoria’ in crypto? MicroStrategy has been betting their entire business on BTC. And has been successful so far. Its share price already exceeds the level from 2021. How much more could MSTR rally? Elliott Wave structure and Fibonacci gives us a possible target above ATHs from year 2000. This will only happen if euphoria keeps building in BTC and crypto.”
Looking at the analysts’ chart, they suggest MicroStrategy could soar to $3,560, more than 118% of the current value, based on the Elliott Wave theory and Fibonacci extensions.
The Elliott Wave theory states that a bullish asset often witnesses a five-wave surge where waves one, three and five are upside moves and waves two and four are corrective periods.
Traders use Fibonacci extensions in technical analysis to estimate profit targets and price pullbacks. They are based on Fibonacci ratios.
MicroStrategy is trading for $1,631 at time of writing, up 3.6% in the last 24 hours. Meanwhile, Bitcoin is trading for $70,282 at time of writing, up nearly 2% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here
