A crypto strategist who nailed the end of the Bitcoin bull market in 2021 is warning Ethereum holders, saying that ETH could witness significant downside risk.
Pseudonymous analyst Pentoshi tells his 677,100 Twitter followers that bearish momentum could go to the next level for Ethereum if it trades below a key support level.
“Below the gray area COULD get ugly. I’ll talk a long down there with a tight stop. It’s a nice spot for some short to mid term invalidation for longs. If we start to close, below it’s an easy out and a paper cut.”
Looking at Pentoshi’s chart, he appears to be referring to support around $1,480. At time of writing, Ethereum is worth $1,576.
Fellow analyst Smart Contracter is also bearish on Ethereum. According to the crypto trader, Ethereum has taken out the diagonal support of a bearish continuation pattern.
“Bear flag structure breaking down on ETH.”
Looking at the analyst’s chart, he appears to be predicting a move down for Ethereum toward the $1,480 price level.
As for Bitcoin (BTC), Pentoshi believes that the king crypto is not yet done correcting. According to the crypto strategist, he sees BTC going all the way down to $21,500 before bulls could mount a small bounce.
“I’d love to see this and would be wanting to play it for a bounce.”
At time of writing, Bitcoin is trading for $22,490.
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Source: https://dailyhodl.com/2023/03/05/top-crypto-analyst-issues-ethereum-warning-says-eth-price-action-could-get-ugly/