A cryptocurrency expert who correctly predicted that the Bitcoin bull market would come to an end in 2021 is now issuing a caution to holders of Ethereum, stating that ETH might experience considerable downside risk.
If Ethereum continues to trade below a crucial support level, the pseudonymous analyst Pentoshi has warned his 677,100 Twitter followers that bearish momentum might increase to the next level for the cryptocurrency.
When you reach below the gray region, things May turn nasty. I’m going to go into a lot of detail down there before drawing to a close. It’s a good area for some short-term to intermediate-term invalidation of long positions.
If you look at the chart that Pentoshi created, it looks that he is talking about the support that is located around $1,480. At the time of this writing, one Ether is equivalent to $1,576.
A second analyst, Smart Contracter, shares our pessimistic outlook on Ethereum. The cryptocurrency trader believes that Ethereum has broken below the diagonal support that was part of a bearish continuation pattern.
The bear flag structure seems to be falling apart on ETH. When looking at the chart provided by the expert, it would appear that he is forecasting a price drop for Ethereum that would bring it closer to the level of $1,480.
About Bitcoin (BTC), Pentoshi is of the opinion that the dominant cryptocurrency has not yet completed its course correction. The cryptocurrency expert believes that Bitcoin will continue to fall until it reaches $21,500 before bulls can begin to make even a slight comeback.
“I’d love to see this and would be wanting to play it for a bounce,” you said. “I’d love to see this.”