Bitcoin has broken above the $70,000 level, but Ethereum’s technical indicators suggest a different trajectory, according to analyst Alan Santana.
The second-largest cryptocurrency continues to show a bearish pattern despite the overall market's apparent strength.
Ethereum remains within bearish flag
According to Santana’s daily timeframe analysis, Ethereum continues to move within a bearish flag pattern. This is essentially a continuation formation that signals the possibility of further decline.
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The cryptocurrency remains well below its October 21st high. The analyst said there were no signs of a breakout of key resistance levels.
Analysts suggest that Bitcoin's move above $70,000 may not represent true market strength. He suggested this could indicate market manipulation or currency-driven price action aimed at liquidating over-leveraged positions.
This skepticism is further supported by Ethereum’s failure to show reasonable strength or set new highs.
Analyst talks about the possibility of ETH reaching $6,000
However, not all analysts share this bearish outlook. Trader Ali identified a key support zone for Ethereum at $2,400.
On October 26th, he suggested that if this level holds, ETH could target a channel ceiling around $6,000. This stark contrast in price forecasts highlights the current market uncertainty.
The broader context includes VanEck's very bullish long-term outlook for Bitcoin. In a recent interview with CNBC, VanEck's Matthew Sigerit said that Bitcoin could reach $3 million by 2050 as central banks adopt Bitcoin as a reserve asset.
This forecast assumes a 2% allocation by global central banks and represents an average annual growth rate of 16% over several decades.
Despite this long-term bullish prediction for the overall crypto market, Santana argues that both Bitcoin and Ethereum will follow similar bearish patterns in the short term.
He argues that the correction needs to run its course before a sustained upward move occurs.
Historical patterns have shown a good correlation between the two largest cryptocurrencies, but current market conditions seem to be testing this relationship.
Can Bitcoin and Ethereum maintain their momentum?
These predictions by analysts surfaced today as Bitcoin regained the $71,000 level. At the time of writing, Bitcoin was up 3.2% and ETH was up about 3.9%, according to data from CoinMarketCap.
Bitcoin is hovering around the $71,000 level, showing clear signs of trouble maintaining this price range. Ethereum was no exception, with the coin touching $2,630 before falling to the $2,600 level.
However, even during this rally, ETH has fallen from its monthly high of $2,765. Interestingly, Ethereum has also fallen over 46% from its all-time high of $4,891.
This ATH was reached on November 16, 2021. Bitcoin broke through the old ATH in March, but ETH has not yet shown enough momentum to clear the old milestone.
