Crypto strategist Benjamin Cowen believes that Ethereum (ETH) can follow gold’s price action this year en route to printing new record highs.
In a new strategy session, the analyst tells his 931,000 YouTube subscribers that he sees Ethereum consolidating above $4,000 in the coming weeks to wait for a key technical indicator to rise before blasting to new all-time highs.
According to Cowen, the same pattern was witnessed in gold this year, when the precious metal consolidated above $3,100 before rallying to its record high of $3,700.
“There does exist a scenario where Ethereum just kind of goes sideways until the 21-week EMA (exponential moving average) catches up, and then it goes higher. That is also a perfectly valid outcome. In fact, we just saw that outcome play out with gold…
That’s exactly what happened with gold. You can see it. It had a big rally, and then it just went sideways until the bull market support band caught up, and then it pushed to a new all-time high… It’s done it plenty of times, where it’ll wait for the 21-week EMA or the 20-week SMA (simple moving average).
It’ll wait for them to catch up, and then it pushes higher, but it doesn’t necessarily have to go all the way down there.”
At time of writing, ETH is trading at $4,342 while gold is worth $3,689.
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