- Peter Schiff suggests selling Ethereum to buy Bitcoin.
- JP Morgan to offer crypto loans using ETH and BTC.
- Technical analysis shows a bullish Ethereum price.
The Ethereum price has been trading upwards, soaring 75% since its June low to $3712 as of Tuesday, 07:53 a.m. E.S.T., with its trading volume also up 1.87% to $4.89 billion.
This rise, however, has been met with resistance from some crypto critics like Peter Schiff, who recently advised traders to sell their Ether and rotate to Bitcoin in a post on X.
According to Schiff’s argument, ETH’s current rally is a temporary market bounce, which has reached the top of its trading range.
He believes Bitcoin is a stronger option in the short term, despite his overall bearish stance on both cryptocurrencies, citing Ethereum’s increased competition in smart contracts and decentralized finance (DeFi) compared to Bitcoin’s established “digital gold” narrative.
Schiff, a well-known trader of silver and gold, consistently criticizes Bitcoin, making his comments seem peculiar. In 2019, he predicted that BTC price would never reach $100K, but Bitcoin went on to cross this milestone.
At $119K, he came on to say that Bitcoin price will tumble back to $100K. His prediction was invalidated with BTC recording new ATHs just days later.
So, how does ETH look technically in relation to Schiff’s comments? Will it tumble or break above $4000?
Ethereum Price Prediction: Primed for More Gains?
The current ETH daily chart outlook seems to conflict with Peter Schiff’s comments. Technical analysis suggests that Ethereum’s rally will continue after a clean breakout above its previous resistance zones.
After consolidating for weeks just below the $2,800 level, ETH finally surged through major Fibonacci retracement levels with authority, flipping prior resistance into strong support.
The simple moving averages (SMA) show that Ethereum is bullish. ETH currently sits well above the 50-day and 200-day SMA, confirming this.
On the chart, Ethereum broke past the key 0.786 Fib level at $2,815 and now appears to be pausing just under the $3,800 mark, a psychological resistance and potential local top.
However, some technical indicators might support Schiff’s claims in the short term. The Relative Strength Index (RSI) sits at 81.87 but is pointing downwards, suggesting the asset is currently overbought.
Historically, readings this high tend to be followed by either a price correction or sideways consolidation.
Meanwhile, the MACD indicator shows bullish momentum, although the histogram is beginning to flatten, hinting at a possible slowdown in buying pressure.
Despite the overheated indicators, the bigger picture remains bullish. ETH is now targeting the 1.618 Fibonacci extension level at approximately $4,347.
That said, a healthy pullback wouldn’t be unusual here. If Ethereum retraces, watch for support to hold at $3,200, and then further down at $2,815 and $2,500. As long as ETH holds these levels, the uptrend remains intact.
ETH Needs Bulls To Invalidate Peter Schiff Comments
Whether Schiff’s advice will hold depends on market dynamics. Ethereum’s rally is supported by institutional interest and ETF momentum, but a failure to break $4,000 could validate his caution.
Today, JP Morgan announced that they are planning to offer crypto-backed loans using Ethereum and Bitcoin. Such sentiments might bring in more buyers into ETH, helping it to push above the $4000 level.
Moreover, institutional demand for Ethereum remains high, with Ethereum ETFs getting $297M in inflows with $2.1B total in the last week. At the same time, Bitcoin ETFs saw a $131M outflow, ending a $6.6B inflow streak.
These show that Ethereum might continue its upward trajectory, potentially breaking the $4,000 resistance level, as institutional interest and ETF inflows bolster demand, countering Schiff’s cautious outlook.
