Widely followed crypto analyst Justin Bennett thinks Ethereum (ETH) is gearing up for another major rally that could launch the crypto asset by nearly 400%.
In a series of tweets, Bennett explains how Ethereum could rally to $20,000 by January 2022 if Bitcoin (BTC) allows for the right market conditions.
“If $BTC breaks $65,000 without a significant pullback first, $ETH probably matches it with a close above the May trend line.
Would put ETH on track for $20,000 in January.
This is my trigger to ape in more than I already am.”
Bennett thinks that a $20,000 top for ETH is more likely given that too many traders are calling for a high of $10,000. He contends that most traders underestimate the rush of capital that can flow in during a parabolic run.
Despite his bullish thesis, Bennett warns traders about a potential dump in the short term that could wipe out overleveraged traders.
“Don’t be surprised if we get a flush this week, potentially toward $53,000 BTC, then all-time highs.
Everyone, including me, is hyper bullish right now, and rightfully so. But that’s when liquidations tend to occur.
Sunday’s $58,900 low is the proverbial line in the sand.”
In response to another crypto trader’s bull run hypothesis, Bennett gives his outlook on the market cycle, expecting a peak Bitcoin price between $207,000 and $270,000 followed by an 80% correction.
Featured Image: Shutterstock/GrandeDuc/pikepicture