The bet means that the trader, or group of traders, believes Ethereum will surge by more than 250% in the next six weeks.
Ethereum famously rallied to an astonishing all-time high of $1,425 in the 2017 bull market. However, since then, it has made consistently lower yearly highs of $831 and $370.
ETH is currently being confronted with the 200 exponential moving average (EMA) on the daily chart, which is expected to act as a bitter point of resistance over the coming days.
— Su Zhu (@zhusu) January 28, 2020
For Ethereum to rally by 250% in the coming six weeks, it needs to rapidly cycle through levels of resistance at $214, $247, $284, and $302 before retesting 2019’s yearly high.
Previous Bitcoin halving events have preceded rallies to new all-time highs, with miners being incentivised to drive up the price of BTC in order for the industry to remain profitable.
If Bitcoin does in fact see a price hike leading up to the halving, it’s likely that major cryptocurrencies like Ethereum will follow. In which case, the $600 price target may not be far off the mark.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.