Get the scoop on finance - sign up for mobile alerts
Ethereum
| On
April 3, 2024

Analyst Unveils ‘Most Brutal Scenario for Ethereum’ (ETH), Warns Bitcoin (BTC) Could Witness More Losses

By Henry Kanapi

A crypto strategist is issuing a warning on Ethereum, saying that ETH is now in the midst of a major correction.

Pseudonymous analyst Ali Martinez tells his 56,500 followers on the social media platform X that Ethereum is now bearish after breaking below support at $3,400.

ADVERTISEMENT

The trader shares a chart suggesting that ETH may witness an over 14% decline from current levels after confirming a bear pennant breakdown.

“The most brutal scenario for Ethereum right now is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a major correction for ETH down to $2,800.” 

Source: Ali Martinez/X

A bear pennant is a technical pattern indicating the continuation of downward price action.

Looking at on-chain data, Martinez says that the $2,850 level may offer support for Ethereum as it is the price area where 1.99 million addresses collectively bought a total of 1.64 million ETH.

ADVERTISEMENT

“Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further ETH correction toward $2,850 or lower.” 

Source: Ali Martinez/X

At time of writing, Ethereum is trading for $3,284, down over 6% in the last 24 hours.

Looking at Bitcoin (BTC), the trader says that the crypto king will likely see more downside moves if it starts trading below the 200 exponential moving average (EMA) on the four-hour chart.

“The 200 EMA on the Bitcoin four-hour chart has been formidable support. Since early February, it has prevented BTC from dropping further.

For this reason, I’m paying close attention to this level because if it holds, it guarantees a rebound, but if it breaks as it did in mid-January, it could lead to more losses for BTC.” 

ADVERTISEMENT
Source: Ali Martinez/X

At time of writing, Bitcoin is trading for $65,592 while the 200 EMA on the four-hour chart is hovering at $65,549.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney