Crypto Analyst Outlines Path for Ethereum’s Rally to $4,000 as Dogecoin (DOGE) Prepares for ‘Volatile Monthly Retest’
A renowned crypto strategist has laid out the path for Ethereum (ETH) to climb to $4,000 while also predicting a turbulent monthly retest for the meme cryptocurrency Dogecoin (DOGE).
In the latest edition of the Rekt Capital Newsletter, the analyst explains that Ethereum is currently consolidating just above the $3,500 support area. According to the newsletter, ETH has been holding this level for several weeks, forming higher lows in the process – an encouraging sign.
To maintain its bullish positioning for a potential upside move, Ethereum needs to continue defending the $3,500 zone as support. The analyst notes that previous successful retests of this area have preceded rallies to the $4,000 resistance level (represented by the green circle).
On the monthly timeframe, the current $3,500 support level previously acted as resistance in mid-2021, mid-2022, and earlier this year. The newsletter highlights that Ethereum is now in the process of retesting this historical resistance as new support, potentially for the first time ever.
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Show more +The analyst states, “Retest is in progress, and the current and previous Monthly candles are forming downside wicks at a Higher Low. Continued stability here should see ETH revisit the green ~$4,000 resistance.”
DOGE Volatile Monthly Retest
Regarding Dogecoin, the newsletter points out that the meme cryptocurrency is technically undergoing a volatile monthly retest following its successful March monthly close above the $0.20 resistance level. Historical data suggests that such volatile retesting is not out of the ordinary, especially when considering the mid-2021 period (represented by the green circle).
The analyst explains that Dogecoin is trying to break back into the $0.20 to $0.27 macro range, and this retest is a crucial step in that process. The weekly bull flag retest may play a vital role in facilitating the monthly retest.
According to the newsletter, the orange bull flag that Dogecoin broke out from a few weeks ago has been successfully retested last week. This retesting behavior needs to continue for Dogecoin to have a chance at successfully retesting the $0.20 level as support on the monthly timeframe.
The analyst concludes, “Effectively, DOGE is now bouncing about between the Bull Flag Top support and the $0.20 resistance, and as long as that Bull Flag Top retest continues to be successful, the $0.20 resistance should be reclaimed just in time for the new Monthly Close above it.”
While the analysis provides insights into the potential price movements of Ethereum and Dogecoin, it’s important to note that the cryptocurrency market is highly volatile, and investors should exercise caution and conduct their own research before making any investment decisions.
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