-
Analyst Michael van de Poppe correctly warned investors against buying the top near ETH’s $4,800 high
-
He then identified $4,100-$4,200 as the key dip-buying zone, which held perfectly
-
A dovish Powell’s speech ignited the rally in this exact zone, validating all of the strategy
A perceived dovish speech by Federal Reserve Chair Jerome Powell ignited the cryptomarket, sending Ethereum roaring towards its all-time-high of $4891.70. The recent trading strategy of analyst Michael van de Poppe has been validated by the ETH rally. He had called for a pulling back before the next big leg up.
Van de Poppe warned against buying in to the frenzy just six days earlier, when Ethereum was pushing towards $4,800. He said that ETH was up over 120% in less than two months, and looked “overextended”, suggesting investors take partial profits instead of opening new long positions.
According to his analysis this level represents a region where Ethereum could stabilise before making another upward movement. According to him, this is a better entry than chasing highs.
Risk is higher at the top
Van de Poppe, instead of chasing the highest levels, marked the $4100 region as a strong support zone. As the market cooled down ahead of the Fed speech, the price dropped and briefly tested the level of $4,200 yesterday. This area saw a Massive bounce from a “Strong Support Block,” as he predicted.
The market settled at his primary level. He had also noted a deeper dip into the $3,600 area would be “the best area” to accumulate. This disciplined dip-buying has now been rewarded, as the market rips upwards. Many now expect an ETH Revenge Rally to be Next.
Van de Poppe emphasized the importance of protecting gains to avoid holding on through heavy corrections. After a rally you could sell a portion of your stock, say 30%, to cushion losses and provide liquidity for reaccumulation at lower levels.
The Powell Pump – The Catalyst for Bounce
Jerome Powell’s Jackson Hole address was the catalyst for this explosive move from the support zone. While the details of Powell’s speech are still being digested by the market, its immediate reaction was overwhelmingly bullish. The market interpreted his tone as an indication that a rate cut is most likely to occur in September.
This has sent a surge of capital back into risky assets, confirming the recent dip as a pre-catalyst consolidate rather than the beginning of a deeper decline trend. The bulls are now in full control and the next major test will be the previous all-time low of Ethereum, just below $4900.
This site is for entertainment only. Click here to read more
