Crypto trader and analyst Michaël van de Poppe says Ethereum is ripe for a significant correction after the second-largest cryptocurrency printed a new all-time high.
Van de Poppe says he’s focused on the early February launch of CME’s Ethereum futures, which will allow investors to trade their positions in physical ETH for an equivalent position in CME Group Ether futures and vice versa.
“You should be aware that the Ethereum futures are going live within like two weeks from now, and usually the top of such a news event occurs a few days or weeks prior to the actual event… and given that the event takes place, the price [then] goes back into its mean, which is significantly lower at this point.”
Van de Poppe says now is not time to hop on Ethereum as he believes that the local top is in for the crypto markets. Instead, he says investors should keep a close watch on a key level.
“We technically have to watch one key level, which is this area around $1,270 to $1,290, maybe even $1,300, that’s depending on lower timeframes.
This is the critical level that we have to watch. [The] previous high has to hold. If we get something like this (a move above $1,500), all cool. But if the price reverses here for Ethereum and loses $1,300, a very likelihood that we’re going to test this range low (around $1,000) here again.
If that is lost, we might be arguing to get towards $900.”
The trader notes that should Ethereum stay above $1,300, it may ascend to $1,600 and $1,700.
ETH is currently trading at $1,314, down nearly 6.8% in the last 24 hours.
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