A closely followed crypto strategist is warning that an Ethereum (ETH) challenger that’s down about 65% this year will likely witness more sell-off events if the altcoin loses its immediate support.
Pseudonymous analyst Altcoin Sherpa tells his 196,700 followers on the social media platform X that Fantom (FTM) holders should watch out below if the Ethereum rival loses support at $0.15.
“FTM: give some reasons why this isn’t going to go to $0.045 Overall, this looks abysmal.
I hope the $0.15 area gives a bounce. The chain itself is underused and overvalued relative to competitors, though.”
At time of writing, FTM is trading for $0.18. A move toward the analyst’s downside target suggests a loss of about 75% from current levels for FTM holders.
Looking at Ethereum itself, Altcoin Sherpa thinks that the leading smart contract platform’s value will likely continue to lose value against Bitcoin (ETH/BTC) until it hits support around 0.053 BTC, which is worth about $1,454.
“ETH: ETH/BTC getting slaughtered, I don’t see a bounce until we get to lower areas. Thinking low 0.05s [BTC]. That said, I still think November is a great time to buy altcoins. The time for a short altcoin rally is just right around the corner in my opinion.”
Based on the trader’s chart, he seems to think that the altcoin markets will rally once ETH/BTC hits its downside target. Traders keep a close watch on ETH/BTC as a bullish pair tends to signal that market participants are moving into altcoins.
At time of writing, ETH/BTC is trading for 0.057 BTC ($1,563).
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