Prominent crypto analyst and trader known as Crypto Tony has shared his prediction for Ethereum’s price movement, foreseeing a pullback before an anticipated rally. Tony explained that he currently does not hold any long positions in Ethereum to avoid being stopped, but he is waiting for a solid pullback to find a suitable entry point.
Tony based his analysis on a 2-hour ETH/USD chart, identifying key support and resistance areas. According to his projection, he expects Ethereum to drop below the local low at $1,840 before experiencing a subsequent rally. Tony attributes this expectation to a recent corrective move upward, which he believes will be followed by another overall downward leg before the price resumes its upward trajectory.
On the daily chart, Ethereum is currently trading sideways in a consolidating pattern after reaching a yearly high of $2,140 in April. Tony’s projected leg down aligns with local support established on May 23, precisely one month after Ethereum achieved its yearly high.
If the price falls below Tony’s projection, it could potentially result in a further decline for Ethereum. In this scenario, bears might push the price toward lower support levels at $1,760 and $1,737, respectively. However, if Tony’s projection holds true, the bulls could gain more strength and propel Ethereum’s price higher, possibly leading to a new yearly high.
At the time of writing, Ethereum was trading at $1,904, indicating a 60.4% rally since the beginning of the year. Many users are eagerly anticipating an altcoin season that could herald the next bull cycle, potentially preceding the upcoming Bitcoin halving event.
It is important to note that Tony’s analysis did not mention an extended bull run for Ethereum. However, the anticipated pullback before the rally suggests an expectation for more bullish entries. Such entries could inject significant momentum into the market and potentially drive Ethereum’s price higher.
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