The recently announced peace deal between Iran and the US, expected to be officially signed on June 19, has triggered a substantial upswing in the cryptocurrency market, with Ethereum (ETH) among the biggest winners.
However, some analysts believe the green wave might be only temporary, predicting a major correction in the coming weeks.
Going South Again?
Several hours ago, ETH climbed to approximately $1,850, and it is currently worth around $1,790 (according to CoinGecko), representing a 7% increase since last Tuesday.
And while some holders might cheer the sharp rise, others think the upswing has occurred in an unhealthy manner and could be followed by a short-term pullback. One person sharing this theory is the popular analyst Ted. He noted that the asset’s Relative Strength Index (RSI) on a 4-hour scale reached its most overbought territory for the past three months.
“Last time this happened, Ethereum dropped 15% in 2 weeks,” he reminded.
The whales’ activity is also worth observing. X user Max Crypto revealed that one large investor opened a $30.9 million short on ETH with 20x leverage when the price was trading near $1,820. With this risky bet, a mere $90 rise would have liquidated the trader.
Whales are known as experienced market participants, and many believe that their decisions rarely depend on their sixth sense but on inside information that they might have about upcoming events that could influence the price. Their behavior is often monitored by smaller players who may get scared and exit the ecosystem, thus negatively impacting ETH’s valuation.
‘Phenomenal Spot’ to Buy?
Other well-known industry participants presented highly optimistic predictions. X user Michael van de Poppe touched on the ETH/BTC ratio, arguing that the current price level is a “phenomenal spot” to invest in the second-largest cryptocurrency over the next 6-12 months.
“Next step = breaking 0.03250 and to be getting clearly into an uptrend again. Other than that, price usually starts, narrative will come up and accelerate the momentum, and I won’t be surprised to see the momentum pick up significantly in the coming period on Ethereum,” he added.
Poseidon also chipped in, claiming that people have 90 days left to buy ETH under $2,000 “for the last time.” Meanwhile, the massive outflow from exchanges supports the bullish scenario.
As CryptoPotato recently reported, nearly 500,000 tokens have been withdrawn from centralized platforms over the past week, resulting in reduced selling pressure and considered an early sign of accumulation.
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