A popular crypto analyst has warned for Ethereum, stating that if the price of the leading altcoin loses a critical level, it will fall.
The pseudonymous analyst known as Altcoin Sherpa said the leading smart contract platform should maintain the $1,750 to $1,757 range. told:
“Below this level, we would likely see a 20% drop to $1,500 or below.”
The analyst then drew attention to historical data by comparing the current price action of ETH with the market structure in May 2021.
“Maybe the only thing that saves the situation is that it always looks so awful before it looks terrible. Price is fractal and the same patterns appear on all timeframes.
This is what happened in May 2021, albeit obviously much different macro conditions. [grafikte] similar price action.”
The trader’s chart shows that Ethereum could go through three distinct phases convincing it to be in an extreme downtrend before bottoming out and rallying.
Altcoin Sherpa concludes his analysis of ETH by saying that he is not 100% sure that it will recover and therefore it is important to maintain the stated sudden drop level.
“You can’t really compare last summer with the present, but you can do some comparisons with fractals on lower timeframes. I’m not saying it’s going to get worse, just an observation that things look really bad before they get better. I think that remains a level that still needs to be maintained.”
Besides, Altcoin Sherpa shared his thoughts on the leading digital asset Bitcoin (BTC), saying that he would prefer to open long positions around $28,400 while he expects BTC to rise above $30,000 midweek:
“A little lower is probably a better place to go long, but this whole area is choppy and the levels are not very clear to me. I prefer to wait for $28,400 first.”
You can check the price movements 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.