The HBO documentary “Money Electric: The Bitcoin Mystery” sparked significant interest and speculation in the cryptocurrency community about the identity of Bitcoin’s pseudonymous creator, Satoshi Nakamoto, in the past week. Nakamoto’s true identity, in theory, could be a sudden volatility-boosting event for crypto markets, and past attempts have been unfruitful.

A closely followed crypto strategist believes it is within the realm of possibility for Bitcoin (BTC) to witness an abrupt rally to $68,000.

Pseudonymous analyst Credible Crypto tells his 423,300 followers on the social media platform X that a relief rally is in sight for Bitcoin and the altcoin market.

But the trader warns that the rally will likely be short-lived and that Bitcoin will soon resume its bearish price action.

“As I’ve said I think some relief here shortly across the board would be ideal.

A couple of variations of low-time frame price action I can see playing out in the coming days.

Grand scheme of things: no change to my belief that this is just part of a larger correction to the downside.”

Based on the analyst’s chart, he appears to predict that Bitcoin could rise to as high as $68,000 before plunging to fresh lows below $48,000.

At time of writing, Bitcoin is trading for $61,919.

Looking at Ethereum (ETH), Credible says the top altcoin’s order book supports his call for a marketwide bounce. According to the analyst, spot investors are stacking buy orders, preventing the price of ETH from going lower, at least for now.

“Spot bid depth on ETH is especially juicy.

Increases the odds of some relief across the board soon in my opinion.” 

At time of writing, Ethereum is worth $2,409.

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The Ethereum price surged 1.03% during the low-volatility Sunday trading session to currently trade at $2,438.The upswing market is a recovery from weekday selling pressure fueled by a war-like situation between Israel and Iran. Will the correction trend extend as ETH L1 fees record an all-time low, promoting a reverse from the prior deflationary trend?

$3K Ethereum Price Rally at Stake as Post-Dencun Inflation

Following the Dencun upgrade, Ethereum’s Layer 1 (L1) fees have witnessed a declining trend to hit an all-time low in mid-2024. The Intotheblock analytics shows the implementation of EIP-4844 has plunged the cost of Layer 2 (L2) transactions by 10x. 

The sharp decline in L1 fees reflects the continuous growth of L2 solutions like Optimism and Arbitrum, which offer faster and more cost-effective transactions. While this move has bolstered Ethereum’s scalability, it has unintended consequences.

As fewer fees are being burned, the supply of ETH has entered an inflationary phase, reversing its prior deflationary trend. If crypto buyers struggle to demand pressure corresponding to the addition of supply, the Ethereum price prediction will witness temporary pullbacks and volatility.

Post-Dencun, Ethereum Mainnet fees hit an all-time low as L2 transactions surged. EIP-4844 slashed L2 costs by 10x, driving record activity.

But with fewer fees burned, $ETH has turned inflationary, reversing its recent deflationary trend. pic.twitter.com/W3p0xuKRXe

— IntoTheBlock (@intotheblock) October 6, 2024

In addition, the renowned crypto analyst Ali Martinez highlights a notable decline in Ethereum large holders with over 10,000 ETH balances. Since July, the whale holding has plunged 7%, indicating that smart money traders are mainly exiting in anticipation of price correction.

The number of #Ethereum whales holding over 10,000 $ETH has decreased by over 7% since July! pic.twitter.com/rRnIDVj2VO

— Ali (@ali_charts) October 5, 2024

ETH Price Hints Major Breakout From Triangle

Over the past two months, the ETH price has shown a sideways trend above $2,200 support. This consolidation in the daily transient Chart shows the price actively resonates between two converging trends and indicates a symmetrical triangle pattern formation. Theoretically, this chart pattern guides a temporary lateral move for prevailing trends to gain momentum.

As the crypto market experienced ease from geopolitical tension in the Middle East, the Ethereum price rebounded from $2,308 to $2,440, accounting for a 5.7% jump.

If the sellers breached the pattern’s lower trendline at $2,200, the bearish momentum would accelerate and drive ETH Crash below the $2,000 level, thus delaying the $3K rally.

The coin price below the 50-and-200-day Exponential moving average supports the bearish narrative.

However, if buyers manage to replenish bullish momentum, the Ethereum price could jump 9% before challenging the triangle resistance. A potential breakout would bolster buyers for the $3,000 target.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.