Pentoshi Explains Why Ethereum Is Ready To Outperform Bitcoin
According to a top cryptocurrency trader and market analyst, known as Pentoshi, Ethereum (ETH) could drastically outperform Bitcoin (BTC) over the next several months.
The pseudonymous crypto trader known as Pentoshi in the industry shares with his 208K Twitter followers that he’s looking for Ethereum to form a higher low to build support for a further rally now that the token has broken out of its downtrend against Bitcoin.
“ETH MACRO VIEW
(Weeks/months) as we know extremes happen inside that
Simply outperforms BTC [in my opinion]
Broke out vs BTC on this massive flag
Would like a [higher low] on the USD pair after the 13 days of up only but that’s locally.”
The implementation of EIP-1559 is now in place, in which is the Ethereum protocol upgrade that will burn a portion of ETH transaction fees.
According to Pentoshi the EIP-1559 is good news for ETH, investors shouldn’t expect an overnight change in price.
“EIP-1559 won’t magically change ETH overnight
But it will reduce ETH inflation
Right now it’s 4.0% per year
PoS [proof of stake] will change it to 0.4% per year, a 90% reduction or = to a BTC triple halving
Add in fee burn, staking, smart contracts and supply > demand. Can’t price it all in.”
Pentoshi outlines the path for ETH’s short-term price action, pointing to $2,550 as a key level for Ethereum to break.
“For ETH what you’d like to see
People who sold to the left before the last breakout start to buy back at break even
Shorts cover
Large limit orders (intent) to fill a base here and create support
What happens at $2,550 is key. Break above = continuation. Reject lower.”
Regarding Bitcoin, the trader was waiting to see how the largest crypto asset reacts in the mid-$30,000 range and if it can reclaim $40,600, which it briefly did. BTC is currently trading at $40,347.
“BTC still waiting for mid 30 keks [thousands] 34.6-37.3k or reclaim of 40.6 thousand
Progressing nicely thus far
Also have to take note of the 200D EMA retest and loss that took place.”
