A closely followed crypto analyst says Ethereum (ETH) may be gearing up for a massive breakout against Bitcoin (BTC).
In a new strategy session, trader Michaël van de Poppe tells his 733,600 followers on the social media platform X the Ethereum/Bitcoin pair (ETH/BTC) is showing a bullish divergence on the daily chart.
A bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators, such as the Relative Strength Index (RSI), a momentum oscillator indicator, are witnessing higher lows.
“A massive bullish divergence on ETH. The entire Ethereum ecosystem thriving [on November 6th].”
In an update, the analyst says that ETH/BTC is starting to take off as it seems investors are rotating profits from Bitcoin’s massive rally into alts like ETH.
“That’s it. The markets are rotating, as ETH has a massive bounce upwards. Next step? Create a higher low and then we’ll be good to continue the upward momentum. DeFi (decentralized finance) is basically exploding already. Good times!”
ETH/BTC is trading for 0.03748 BTC ($2,844) at time of writing, up 4.84% in the last 24 hours.
He also believes that an expected Fed rate cut on Thursday could send Bitcoin and other crypto assets soaring.
“Ethereum bounces upwards. I think we’ll continue that pace. The Fed meeting on Thursday is important to watch, where they’ll likely state another 25 bps rate cut. Then continuation on the markets and $90,000-$100,000 for Bitcoin next.”
Looking at Bitcoin, the analyst says that Bitcoin needs to hold the $72,000 as support to remain in the uptrend.
“Bitcoin made a new all-time high! What’s the level to hold? I think the $72,000 area. If that holds, we’ll be fine for further upward momentum. The markets are finally waking up and altseason is around the corner!”
Lastly, the analyst says that the native token of the layer-1 blockchain Sei (SEI) could soar more than 20% from its current value.
“The markets are waking up, through which SEI reclaimed an important level. I assume we’ll need to hold the $0.36 area. If that holds continuation towards $0.50.”
SEI is trading for $0.41 at time of writing, up 6.6% in the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/bima aldisa
