A closely watched crypto strategist believes compressions are in sight soon for a newly launched altcoin running on the Ethereum (ETH) blockchain.
Popular crypto analyst Cantering Clark tells his 160,600 Twitter followers that he has his eye on Blur (BLUR), a non-tradable market project.
According to the analyst, traders are betting against the ETH-based altcoin, opening the doors for a violent move to the upside if BLUR gathers bullish momentum.
“The top exchange by volume and open interest in BLUR is OKX. Funding is currently negative as open interest is growing similar to the start of the first leg when people offset the introduction of perps.
I think we have more pressure ahead.”
A short squeeze occurs when traders who borrow an asset at a certain price in hopes of selling it at a lower price to make up the difference are forced to buy back the borrowed assets as momentum moves against them, causing further rallies.
In the case of BLUR, Cantering Clark believes the altcoin could soar to an all-time high as long as it trades above $1.
“A move above $1 again leads to a quick move to an all-time high. Right now, I think holding high will lead to a similar measured move. The latest VWAP [volume weighted average price] is from break $1. It looks bullish. $1.50 seems reasonable.”
At the time of writing, BLUR is worth $1.27, indicating an upside potential of nearly 300% if it reaches the all-time high of $5.02.
Looking at Ethereum itself, Cantering Clark says it’s within the realm of possibility that ETH could reflect the market structure of 2019 when it managed to rally from below $100 to $400 before a correction back to around $100.
“Okay ETH heads hit your pipe and hear me out.
But try not to fomo [fear of missing out]…
Looking at the trader’s chart, it seems to suggest that ETH could rise above $2,000 before another major correction if Ethereum mimics the 2019 price.
At the time of writing, ETH is worth $1,677.
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