A closely tracked analyst is warning crypto traders that the rallies of Ethereum (ETH), Binance Coin (BNB) and two other altcoins could soon hit a pit stop.
Pseudonymous analyst Altcoin Sherpa tells his 181,300 Twitter followers that the market structures of Ethereum, Binance Coin, Near Protocol (NEAR) and Cosmos (ATOM) look similar, and all appear to be setting up for a corrective move.
“Many of these altcoin charts have a very similar structure: some sort of rounded bottom from the lows. I think that upside is fairly limited from here, and it’s really all going to depend on Ethereum because it leads. Watch for a cup and handle or a double bottom coming.”
Based on the analyst’s chart, it appears that Altcoin Sherpa is suggesting that Ethereum will likely struggle around $2,160. At time of writing, Ethereum is changing hands for $1,981, flat on the day.
Looking at Binance Coin, the utility token of crypto exchange Binance, the crypto strategist implies that BNB may struggle at current levels as the 200-day exponential moving average (EMA) acts as resistance.
At time of writing, BNB is swapping hands for $324.33, still hovering below the 200-day EMA.
As for Ethereum rival Near Protocol, Altcoin Sherpa believes that the smart contract platform will likely find resistance at $6.09.
At time of writing, NEAR is valued at $5.77, down nearly 2% on the day.
The last coin on the trader’s radar is Cosmos, a project that aims to build an ecosystem of blockchains designed to scale and communicate with each other. According to Altcoin Sherpa, ATOM is set to face resistance at $12.50.
At time of writing, ATOM is trading at $11.77, down 1.92% in the last 24 hours.
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