According to a closely followed crypto analyst, Bitcoin (BTC) and Ethereum (ETH) are preparing for the next leg of their respective rallies.
Kevin Svenson tells his 112,600 Twitter followers in a new video that Bitcoin and Ethereum are flashing bullish signals on the lower timeframes.
The crypto strategist also warns traders who intend to short sell Bitcoin and Ethereum.
“I believe it is dangerous to try to short into momentum.” When your EMAs [exponential moving averages] show that momentum is up, you can not place a short order.”
When it comes to Ethereum, Svenson believes the 20-day EMA is about to cross over the 100-day EMA, indicating that momentum is shifting in favor of ETH bulls.
“Since the end of 2021, these two moving averages have been pointing down 99% of the time… What’s interesting is that we’ve obviously had a quick shift in the short-term yellow  EMA, but it’s about to cross the 100 [EMA] on the daily. This is fairly significant, in my opinion.
The 100 EMA had already flattened out and is now pointing up. Momentum is rapidly shifting upwards right now.”
The cross between the two EMAs, according to Svenson, could spark a rally to Ethereum’s macro resistance level of $2,500.
Although Svenson is bullish on Ethereum in the short term, he warns that ETH could fall and resume its downtrend after hitting its diagonal resistance.