Both Bitcoin and Ethereum have pushed higher after the local lows on Thursday.
Both digital assets are up around 5% from those lows, with BTC pushing to $11,600 and ETH to $400.
This move brings Ethereum, especially, above the pivotal $400 resistance.
$400 is a technical level and a psychological level, with the last break above this level in mid-August triggering a 10% rally.
One trader thinks that ETH could plunge 20% in the near future despite the recent strength.
Here’s why he thinks so.
ETHEREUM COULD PLUNGE 20% TOWARDS $320: ANALYST EXPLAINS
Ethereum is preparing to fall from the $405 highs towards $320 according to a cryptocurrency analyst. The analyst in question shared the chart below on August 28th, noting that he thinks ETH could be primed to move from $405 to $320, which would mark a drop of 20%.
As to why this drop may be had, he cites how $405 is the “cleanest” short setup for him, where a move above that level would represent a continuation of the uptrend while the failure could signal a bearish reversal.
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