While Bitcoin has surpassed the $70,000 mark, Ethereum’s technical indicators suggest a different trajectory, according to analyst Alan Santana.
The second-largest cryptocurrency continues to display bearish patterns despite the broader market’s apparent strength.
Ethereum Moving within a Bearish Flag
According to Santana’s analysis of the daily timeframe, Ethereum continues to move within a bearish flag pattern. This is basically a continuation formation that suggests further downside potential.
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The cryptocurrency remains considerably below its October 21 peak. According to the analyst, it is showing no signs of breaking above key resistance levels.
The analyst suggests that Bitcoin’s move above $70,000 might not represent genuine market strength. He suggested that it could potentially indicate market manipulation or exchange-driven price action aimed at liquidating overleveraged positions.
This skepticism is further validated by Ethereum’s failure to show corresponding strength or establish new highs.
Analyst Talks about ETH’s Potential to Hit $6,000
However, not all analysts share this bearish outlook. Trader Ali has identified a critical support zone for Ethereum at $2,400.
On October 26, he suggested that if this level holds, ETH could potentially target the channel’s upper boundary near $6,000. This stark contrast in price predictions highlights the current market uncertainty.
The broader context includes VanEck’s extremely bullish long-term outlook for Bitcoin. In a recent interview with CNBC, VanEck’s Matthew Sigelit stated that BTC could reach $3 million by 2050 as central banks adopt it as a reserve asset.
This projection assumes a 2% allocation by global central banks and represents a 16% compound annual growth rate over several decades.
Despite these long-term bullish projections for the cryptocurrency market as a whole, Santana maintains that both Bitcoin and Ethereum are following similar bearish patterns in the short term.
He argues that the correction must run its course before any sustained upward movement can occur.
While historical patterns often show correlation between the two largest cryptocurrencies, current market conditions appear to be testing this relationship.
Can Bitcoin and Ethereum Sustain Momentum?
These projections from analysts surface as Bitcoin reclaimed the $71,000 level today. According to CoinMarketCap data, Bitcoin was trading with a 3.2% surge, while ETH was up by almost 3.9% at press time.
Bitcoin was hovering at the $71,000 level and is showing clear signs of trouble in sustaining this price point. Ethereum is no different, as the coin fell to the $2,600 level after touching $2,630.
However, even amidst this rally, ETH is down from its monthly high of $2,765. Interestingly, Ethereum was also down by over 46% from its all time high of $4,891.
This ATH was reached on November 16, 2021. While Bitcoin breached its old ATH in March, ETH hasn’t yet showcased that momentum to clear its old milestone.
