Cryptocurrency strategists have issued a warning regarding Ethereum, stating that ETH is currently in the midst of a major correction.
Pseudonymous analyst Ali Martinez told his 56,500 followers on social media platform X that Ethereum is bearish after falling below support at $3,400.
After confirming the breakdown of the bearish pennant, the trader shared a chart that suggests ETH could fall by more than 14% from current levels.
“The most brutal scenario for Ethereum at the moment is a breakout of the $3,400 support level. Such a move could confirm the formation of a bearish pennant on the daily chart, with a significant push to $2,800 for ETH. It can cause adjustments.”
A bearish pennant is a technical pattern that indicates a continued decline in price.
Looking at on-chain data, Martinez said the $2,850 level could serve as support for Ethereum, as this is the price range where 1.99 million addresses purchased a total of 1.64 million ETH.
“Ethereum below $3,460 is a problem for bulls! Given the lack of support, a further correction for ETH below $2,850 becomes more likely.”
At the time of writing, Ethereum was trading at $3,284, down more than 6% in the past 24 hours.
Focusing on Bitcoin (BTC), the trader said that if it opens below the 200 exponential moving average (EMA) on the 4-hour chart, the crypto king is likely to fall further. .
“The 200 EMA on Bitcoin’s 4-hour chart has become a strong support. Since early February, further declines in BTC have been blocked.
For this reason, I pay close attention to this level. If this level holds, a rebound is guaranteed, but a breakout like in mid-January could lead to further losses for BTC. ”
At the time of writing, Bitcoin is trading at $65,592 and the 200 EMA on the 4-hour chart is hovering at $65,549.
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