A widely followed crypto analyst says Ethereum (ETH) is following a 2019 pattern and will soon see a price correction.
In a new video update, Nicholas Merten, the host of DataDash, tells his 512,000 YouTube subscribers that ETH is having only a short-term relief rally.
He says ETH’s monthly chart shows the ongoing rally is likely unsustainable since the current price is above the momentum indicator. Merten says ETH is likely to repeat a pattern in 2019 that saw the smart contract platform token rise from about $80 to around $300 before collapsing down to the $100 level.
“When I see these kinds of moves, especially when I see price above the indicator, that for me is a telltale sign that we are not ready to sustain in a long-term bull market, that this is a short-term relief rally of overexuberance in the market.
It’s exactly what happened back here in May of 2019 when Ethereum came all the way from around $80 all the way up to $367.
Now, I’ll be honest with you guys, I don’t think we’re going to see that same level of percentage increase, but at the same time, one thing that we’ve talked about is our levels here for Ethereum potentially coming down toward similar correction compared to what we’ve seen before.
Perhaps we aren’t going to see such a brutal bear market. I want to show that I’m trying to meet somewhere in the middle. Perhaps it’s not going to be as much of a doomsday scenario and a direct correction as we were expecting.”
Ethereum is trading for $2,099 at time of writing, up 1.1% in the past 24 hours.
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