A popular pseudonymous crypto analyst who accurately predicted Bitcoin and Ethereum’s recent pullback is updating his outlook on the markets.
In a new market update, Smart Contracter says Ethereum now appears to have hit a bottom.
“I do think we’ve just hit a major correction low and we’re probably already bottomed here and I do think we’ll probably get an all-time high.”
He highlights Ethereum’s price action off the bounce in July, noting that the crypto asset appeared to complete a five-wave bullish pattern from the Elliot Waves theory. The Elliot Waves theory is a trading method that aims to predict future price action using crowd psychology that manifests itself on charts through a series of waves.
According to the theory, an asset goes through a significant pull-back (ABC wave) after completing a five-wave cycle in an uptrend.
After topping out just under $4,000 and completing the five-wave impulse, Contracter accurately predicted Ethereum’s retrace to roughly $2,700. Since the pull-back, ETH has steadily recovered, trading at $3,150 at the time of writing, according to CoinGecko.
The trader is expecting new all-time highs now that it has completed its correction following its five-wave impulse.
“I am expecting a new sort of impulsive move similar to this five-wave rise to new all-time highs from here…
The analyst says Bitcoin is looking very similar to Ethereum and will most likely move up further after one more ABC wave correction. At the time of writing, Bitcoin is trading at $44,800.
“I dare say, similar with Ethereum, we’re probably gonna go a little bit higher and then we’ll have a nice little ABC [correction]…
And then I do think from there, if this is an ABC complete, exactly the same deal again, I dare say we’re gonna be starting a new impulse to all-time highs.”
Smart Contracter also says he is particularly bullish on the smart contract platform Solana (SOL), hypothesizing that it will have one of the strongest rebounds in the altcoin market.
“When BTC and ETH bottom I think SOL [will] rebound the hardest [and] hit all-time high the fastest, starting to stack spot at these levels.”
I’ll average down if need be, no actionable setup just yet more of a knife catch hunch.”