Smart Contracter Predicts Strong Performance For ETH, AAVE And SOL
A pseudonymous crypto analyst and trader, known in the industry as Smart Contracter, predicts strong performance for Ethereum (ETH). He is also looking into Aave and Solana – rallies incoming for both.
Ethereum (ETH)
Smart Contracter shared with his 176K followers on Twitter that he is closely following Ethereum against Bitcoin (ETH/BTC). The analyst expects ETH to remains bullish against BTC after it broke out from a large inverse head and shoulders pattern (IHS).
“ETH/BTC is still huge IHS breakout after a three-year base. It may have been somewhat boring the last few months but make no mistake about it, this is re-accumulation in a monster uptrend.”
An inverse head and shoulders pattern is a bullish technical signal that usually suggests for a new uptrend to begin. According to the analyst’s chart, ETH/BTC is consolidating within a bullish continuation pattern and could jump as high as 0.12 BTC.
Smart Contracter also looked into ETH against the US dollar, the crypto strategist says ETH/USD on its way to $5,000 after it broke diagonal resistance.
“I think today is the day we get a proper $ETH [all-time high] breakout.”
Smart Contracter also looked into lending and borrowing protocol Aave (AAVE), and thinks that is ready to spark a massive rally after forming a bullish higher low setup.
“Aave putting in a solid weekly higher low here. With blue chips like CRV already moving, I’m going to assume other blue chips have bottomed and are not far behind. [Decentralized finance season] is near and Aave is an old favorite of mine.”
The trader uses the Elliott Wave theory, which is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing.
Reading the analyst’s chart, AAVE could go as high as to $900 before completing its five-wave cycle.
Solana (SOL)
Regarding Ethereum competitor Solana, the trader predicts an incoming rally for SOL after it broke two diagonal resistances on the 12-hour chart.
“Got SOL low key breaking downtrends of two different degrees. This bad boy runs hard when it gets going and it’s only just getting started here.”
Solana in short term can revisit its all-time high of $218, according to Smart Contracter. In the long term, he sees Solana going as high as $900 as he believes SOL is mimicking the price path of Binance Coin (BNB), which soared earlier this year.
“Monthly reminder $900 SOL is not a joke. It’s gonna happen.”
