The price of the second biggest digital currency Ethereum may go down, according to crypto analyst Ali Martinez. He has spotted a sell signal on the ETH/USD chart on Coinbase exchange.
However, he believes that a "bullish breakout" is also possible; here's what ETH needs to achieve this.
"A bullish breakout to $1,600?"
Martinez tweeted that the TD Sequential indicator has shown a sell signal on the daily ETH/USD chart. If it becomes validated, the analyst believes, the ETH price could go down to the $1,283 level or even hit $1,235.
Still, there is also a chance for a bullish breakout of the second biggest token. To achieve this, Ethereum needs to stage a daily close above the $1,355 level, according to Martinez's tweet.
At the time of this writing, Ethereum is changing hands at $1,332 after growing by less than 1% in the past 24 hours.
The TD Sequential presents a sell signal on the daily chart as $ETH meets resistance at the X-axis of an ascending triangle. If validated, #Ethereum could retrace to $1,283 or even $1,235.#ETH must print a daily close above $1,355 to trigger a bullish breakout to $1,600. pic.twitter.com/yeUVbPUohp— Ali (@ali_charts) January 9, 2023
Will Ethereum lead crypto market rally this year?
As reported by U.Today recently, a prominent entrepreneur in the mining business, Jiang Zhuoer, who spearheads major mining companies BTC.TOP and B.TOP, shared his take on what turn prices on the crypto market may take as the year 2023 unfolds.
Jiang Zhuoer is excited by the prospects of Ethereum as opposed to Bitcoin. He is fascinated by ETH since, after developers moved Ethereum from the proof-of-work algorythm to the proof-of-stake one, he expects ETH's inflation rate to be only 0.01% vs. its 3.59% before the switch to PoS.
He, therefore, expects ETH to start rising between March and May this year, and he believes it will happen before Bitcoin begins to go up.
However, not everyone is so optimistic about ETH. Over the weekend, U.Today reported that anonymous whales bet on ETH's price dropping to the $400 level by the end of June 2023.
They made a block purchase of 26,000 Ethereum put options with the strike price standing at $400. Some believe that these whales expect a price drop after the Shanghai upgrade allows stakers to withdraw massive amounts of ETH from the Ethereum 2.0 deposit contract.