The popular cryptocurrency analyst warns of a potential danger to the Ethereum (ETH) and altcoin markets.
In a new video, analyst Nicholas Merten says there is still market confidence in Ethereum’s Bitcoin perk (ETH/BTC) despite recent disadvantages:
“We saw it here which we are experiencing another drop in ETH price. However, so far, we have continued to maintain the high-low price trend that we started here in June, and overall we are still testing at similar or higher ranges. This is an indicator of confidence in the market. Now that it’s noticed, we’ve had a pretty solid fix [since September 2021]. It gets to a very fragile point, where if we go below this range we have on the chart, which is somewhere around worst-case scenarios, we’re currently at 0.066 in ETH/BTC – if we get another 10% drop against that ratio. If we do, that could be a clear sign that the market is ready for a longer decline.”
While Merten strongly believes that cryptocurrencies will disrupt financial markets over the next decade, he goes on to explain that this does not mean that the price of Ethereum will not fall without hitting potential new highs.
“If we truly experience a dip below the 0.06 ETH/BTC range, that could be a really big warning sign for prices. Not only does this break the confidence line, but on top of that, it fails to find those potential lower support ranges where you have a little more leeway for corrections and price.”
Ethereum was trading at $2585 at the time of writing.
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