dailyhodl.com
A widely followed crypto analyst is warning that Ethereum ($ETH) could collapse in value after failing to hold a key level.
In the latest edition of the trader’s altcoin newsletter, pseudonymous crypto trader Rekt Capital warns that Ethereum could dip below $3,000 based on historical precedence.
“Ethereum is in a complicated spot. Because it has rejected from the green $3,956 resistance, similarly as in the past (red circles).”
The trader believes that Ethereum needs to hold the level around $3,342 or it could move down much further to the $2,700 level.
“A weekly close below the orange box [around $3,342] would likely trigger a breakdown whereas consistent holding of the orange box as support should be enough in building momentum for the next leg up.”
If $ETH does dip into the $2,000s, the trader says he will still remain long-term bullish on Ethereum.
“Whatever the scenario, $ETH needs to reclaim this orange boxed area as support (blue circle) to enable uptrend continuation.
So whether $ETH does that now to precede a rally to ~$4,000 or whether it needs to first drop into the ~$2,700s before doing so doesn’t make much of a difference in the long-term because macro uptrend is bullish, but offers dollar-cost-averaging opportunities in the short-term.”
Ethereum is trading for $3,340 at time of writing, down more than 4% in the last 24 hours.
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