7 December 2021
The pseudonymous trader Smart Contractor with 176,000 followers on his Twitter handle stated that he’s keeping a close watch on Ethereum against Bitcoin (ETH/BTC) because he believes the trading pair remains bullish 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,” stated the smart contractor.
Moreover, according to Smart Contractor's chart, ETH/BTC is currently consolidating within a bullish continuation pattern where it climbs as high as 0.12 BTC, worth $7,287 at the time of writing. Whereas the Crypto strategist said, the leading smart contract platform against the US dollar is now en route to $5,000.
“I think today is the day we get a proper $ETH [all-time high] breakout.”
Next on the list is the lending and borrowing protocol Aave (AAVE), which the trader believes is ready for an epic bull rally after printing a bullish higher low setup. Emphasizing further, the trader added, “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.”
In addition, the trader utilizes Elliott Wave theory. This is a technical analysis approach that predicts future price action by following the psychology of market participants that tends to manifest in waves. As per Smart Contractor's Chart, AAVE has the potential to soar close to $900 before completing its five-wave cycle.
Coming to Solana, the Smart Contractor predicts a strong rally for the red-hot altcoin after it breached two diagonal resistances on the 12-hour chart. The contractor added, “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.”
The smart contractor believes that for the short term, Solana can revisit its all-time high of $218. Meanwhile, in the long term, Solana can ignite a massive rally to $900 as he believes SOL is following in the footsteps of Binance Coin’s (BNB) epic surge earlier this year. “Monthly reminder $900 SOL is not a joke. It’s gonna happen,” added the contractor.