A closely-followed analyst has warned crypto traders that Ethereum (ETH), Binance Coin (BNB) and two other altcoins may soon face critical resistance.
The analyst, using the altcoin Sherpa alias, told 181,300 Twitter followers that the market structures of Ethereum, Binance Coin, Near Protocol (NEAR) and Cosmos (ATOM) look similar and are all poised for a corrective move. told.
“Most of these altcoin charts have a very similar structure: a kind of round bottom made up of bottoms. I think the upside is pretty limited here and everything will really depend on Ethereum because ETH is the leading altcoin. Pay attention to the cup and handle formation or double bottoming.”
The cup-handle formation is a popular pattern used in technical analysis. In this formation, first a bowl and then a second bowl with a scale of approximately 1/3 are observed. Altcoin Sherpa’s chart shows that the first bowl has just formed.
According to the analyst’s chart, Ethereum is likely to struggle around $2,160.
Looking at Binance Coin, the utility token of crypto exchange Binance, the analyst suggests that BNB may struggle at current levels as the 200-day exponential moving average (EMA) acts as resistance.
As for Ethereum rival Near Protocol, Altcoin Sherpa believes the smart contract platform will most likely meet resistance at $6.09.
The last altcoin on Trader’s radar is Cosmos (ATOM). According to altcoin Sherpa, ATOM will face resistance at $12.50.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.