A closely followed crypto strategist is issuing an alert to Ethereum (ETH) holders that they should be on the lookout for a possible corrective move.
Pseudonymous analyst Cred tells his 47,200 YouTube subscribers that Ethereum is currently struggling to take out a key resistance level on the monthly timeframe.
According to the crypto strategist, Ethereum’s current market structure makes it at risk for a quick pullback.
“If there’s a flush lower, I would look out for this triple higher low structure that makes it susceptible to some sort of poke or prod. I don’t like these very nicely stacked trendline-esque higher lows. So if there’s going to be any visible rejection from this monthly level [$1,678], I wouldn’t be terribly shocked if we saw some trading through those lows [below $1,600], especially given this pre-breakout consolidation has rather been messy.”
At time of writing, Ethereum is worth $1,673, still below Cred’s monthly resistance area.
As for Bitcoin (BTC), Cred explains why he believes the king crypto’s rally has stalled.
“You can see on the daily timeframe that momentum has changed to a decent extent. Here [$18,000 to $21,000] you had impulse, very short consolidation, another strong impulse. Here [$23,000] you just had consolidation, attempt to break out, but you did not get continuation.
And that’s because here [$21,000], we just reclaimed the big level [$18,000], and we’re in the middle of nowhere. Whereas where we are now, we are into a big level so you can’t expect the same type of price action necessarily.”
At time of writing, Bitcoin is worth $23,304.
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