A popular crypto strategist and trader is outlining what’s next for Ethereum (ETH) and its rivals Polkadot (DOT) and Terra (LUNA) as altcoins flash signs of life.
Pseudonymous analyst Altcoin Sherpa tells his 167,100 Twitter followers that while leading smart contract platform Ethereum looks bullish on the lower timeframes, he warns that a correction is in sight as ETH is now trading at a key resistance area.
“This isn’t generally how bottoms are formed; I think a return to the lows is likely (eventually). With that said, price has still maintained a bullish market structure on the 4h with [higher highs and higher lows]. Approaching a scary area in the $3,000s. Be careful.”
Next up is interoperable blockchain Polkadot. According to the crypto analyst, DOT looks ready to ignite a 27% rally from its current price of $21.90 to his target at $28.
“I think that a short-term bottom may be forming; to be determined if this is the long-term bottom. Price will need to consolidate here for a while before I think that happens. Possible lower high to mid $20s near the 200-day exponential moving average and then lower.”
Another coin on the trader’s list is decentralized finance (DeFi) payment network Terra. Altcoin Sherpa says LUNA may be carving a bottom between $45 and $53 as it trades in a high-volume node (HVN) region.
“I still think the bottom is in for the short term. Lots of volume and a HVN on volume profile is around this area. Expecting this to chop and then go up.”
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