The popular cryptocurrency analyst warns traders that smart contract platforms Ethereum (ETH) and Solana (SOL) are poised to resume their downtrend. The analyst also emphasized that traders should be cautious in the coming weeks as there is a lot of uncertainty in the macro environment.
Anonymous trader Pentoshi said that the failure of the bulls to push Ethereum above the $3100 resistance puts ETH at risk of revisiting the sub-$2000 macro range.
“ETH has been retested on the downside after a 50% jump from $2200. March is the key to everything.”
Pentoshi cites the possibility that the Federal Reserve will raise interest rates in March to curb inflation. The crypto strategist suggests that traders should be cautious in the coming weeks as there is a lot of uncertainty in the macro environment.
“The ball is in Fed’s court. I still really believe in being cautious for the month of March. This market isn’t going anywhere. The Fed’s situation is unprecedented, and we don’t yet know how these changes will actually affect the markets. Just be safe. This much.”
Looking at Solana, Pentoshi says he expects SOL to revisit $80 after rejecting $120. A move below $80 will likely bring Solana down to $50, according to the analyst.
“Let’s create a proper market structure for the coming year and fill in the areas where support is not formed.”
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