A widely followed crypto analyst says things are not looking good for the top two crypto assets by market cap.
“The bulls did not show up as expected, and now we must brace ourselves for significant upcoming challenges. This pain won’t only affect Bitcoin but also the entire altcoin space, including Ethereum. There are warning signs indicating Ethereum’s potential collapse in the next few weeks, with its ascending support line at risk.
If the bulls fail to provide support by buying, considering they didn’t support resistance and boost prices, the situation could worsen. The point of distribution and supply hitting the market was at $2000, and if they do not appear now, the year-long bullish pattern in progress could lose its confirmation.”
Merten says there are simply many more Ethereum sellers than buyers at the moment, and that no amount of bullish tokenomic factors can address it. According to the analyst, ETH may be on the verge of breaking support and heading below the $1,000 level.
“This might lead to breaking through the current price range and descending back to previous support or even further down towards capitulation territory in the hundreds of dollars for Ethereum. Despite factors like staking and deflationary mechanisms, the essential question revolves around market buyers versus market sellers.
This discrepancy in liquidity drives price trends, be it upward or downward. The prevailing sentiment seems to reflect a music-stop moment, even among those who believed in a new bull market narrative. Ethereum and the broader crypto space are facing notable shortcomings in terms of fundamentals.”
BTC is worth $25,837 at time of writing, down 11.4% in the last week. ETH is down 10.2% over the same period, currently trading for $1,636.
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