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Crypto analyst Justin Bennett is saying the direction of Cardano (ADA) and Ethereum’s (ETH) price will likely depend on whether Bitcoin (BTC) exhibits bullish or bearish behavior.
In a new issue of the Cryptocademy newsletter, Bennett says that Ethereum’s support at the $4,200 level is currently holding well.
The second-largest crypto asset could appreciate further depending on Bitcoin’s next moves, according to Bennett.
“[Bouncing off the $4,200 level] could open the door to higher levels like $4,600. Just keep in mind that it depends on what BTC does if it reaches the $53,000 resistance area.”
Ethereum is trading at $4,315 at the time of writing.
The crypto trader points to the smart contract platform Cardano currently enjoying strong support at the $1.35 level. According to Bennett, if Cardano rises above $1.50 it would indicate more upside potential while falling under $1.35 would be bearish.
“Cardano has reached an interesting place on the chart. There’s a confluence of support near $1.35 that’s currently holding on a daily closing basis.
We’ll see if that continues. As we all know, it’ll likely depend on whether or not Bitcoin can get back above $53,000.
A close above $1.50 would signal strength and expose $1.70 while a close below the $1.35 area would suggest further downside.”
Cardano is trading at $1.37 at the time of writing.
Bennett says that after falling by over 20% in a span of hours about a week ago, Bitcoin has made an “impressive recovery.” The crypto trader says that unless Bitcoin rises above $53,000, the recovery recorded so far is “just a relief rally.”
Bitcoin is trading at $49,340 at the time of writing.