A popular Twitter analyst says that a region on the Ethereum chart that acted as support in March will be decisive. According to altcoin Sherpa, if Ethereum breaks below this support band, a major price drop could be seen.
Altcoin Sherpa warns ETH investors, says ETH is at risk
A prominent crypto expert has drawn a support band for Ethereum and predicted a massive price drop if it falls below this level. The popular Twitter analyst, nicknamed Altcoin Sherpa, warns his 176,300 followers that the leading smart contract platform must hold the $1,750 to $1,757 range or face losing 20% or more. The analyst says:
Below this level, we will likely drop another 20% to $1,500 or below.
The analyst then looks at the historical data. He shares a chart showing how the current price behavior of ETH could mimic the market structure of May 2021. Analyzing the Ethereum 2021 price action in the chart below, the analyst says:
Perhaps the saving grace is that it always looks awful before it looks that way. Price is fractal and the same patterns appear on all timeframes. That’s what happened in May 2021, similar price action on a one-day [chart]. Obviously very different macro conditions.
Ethereum can go through 3 distinct phases
According to Sherpa’s technical analysis, Ethereum is each going to be serious before investors hit rock bottom and recover. He may be going through three separate stages that convince him that he is somehow pessimistic.
Altcoin Sherpa states that it is not sure that it will rise and it is very important to maintain the stated capitulation threshold, concluding its ETH analysis with
It is difficult to compare last summer with today, but shorter you can draw some parallels with fractals in time zones. I do not foresee a price increase; rather, I observe that things get worse before they get better. From my point of view, this is still a must-have level.
Ethereum (ETH) is trading at $1,763.15 at the time of writing. It has lost about 2% in value since last week. It fluctuated slightly in the last 24 hour time frame.
Analyst expects these levels in Bitcoin
Altcoin Sherpa also analyzes the leading crypto Bitcoin (BTC). He states that although he expects BTC to rise above $30,000 by mid-week, he would prefer to take long positions around $28,400:
As predicted, it’s back in range. For a long time, a little below is probably the better position, but this entire region is volatile and uncertain in terms of levels. I’d rather wait until the price drops to $28,400.
As we have included in the analysis ofKriptokoin.com, Bitcoin is trading at $ 29,587.22 at the time of writing. It briefly reached over $30,000 in late May.
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