A widely followed crypto analyst says a major sell-off event is on the horizon for altcoins, but notes that leading smart contract platform Ethereum (ETH) may be safe.
In a new strategy session, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that altcoins look primed for a sustained corrective move.
“Not only are altcoins at the moment looking like they’re ready for a continued pullback, we’re doing our due diligence, we’re trying to find the projects we’re interested in but at the same time, I’m going to be honest with you guys, I do see the market continuing to correct.”
Looking at Binance Coin (BNB), the native token of crypto exchange Binance and currently the fifth-ranked digital asset, Merten says its price action could reveal what’s next for the altcoin market at large.
According to the crypto trader, BNB could witness a deep correction if it fails to hold the $30 billion level in terms of market cap.
“We are basically trying to determine now that Binance [Coin], or BNB, has broken through this long-term trend line that it held since 2017, how low can things go? Can it hold here at around $30 billion? Because if it can’t, if it breaks through that level, we are entering into no man’s land.”
At time of writing, the market cap of BNB is $37.6 billion.
Although Merten is cautious on altcoins, he says that Ethereum could swim against the tide.
“Out of all the cryptocurrencies out there, one that has stood out that looks at least more bullish to me is the price pattern of Ethereum. Over the last more than a year, it has been building an ascending triangle. This is a bullish pattern where you have a flat range of resistance, ascending lows that line up, squeezing and coiling in price, usually to bounce to the upside.
However, I want to make it clear that there’s no guarantee of that as with all technical patterns, we’re just simply working with what we have.”
Ethereum is trading for $1,883 at time of writing, a fractional decrease during the last 24 hours.
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