Ethereum [ETH] In Trouble? Analyst Warns Altcoins Could Plunge Further

The crypto market has been all red. This has been the trend for the last couple of days. Although the drop has been moderate, most digital assets are trading just above key supports and are at risk of an extended plunge. One prominent analyst believes that the worst isn’t over and a couple of coins will see a further drop before finding meaningful support.

Advertisement


The Higher The Rally, The Deeper The Drop

Popular analysts ‘The Wolf Of All Streets who goes by Twitter handle, @scottmelkel, has been warning that a number of coins could be headed deep under. He notes that the coins that had the highest gains are the same that were overbought. They will be crashing hard as they struggle to find support.

He does not specify which coins these are. But a number of altcoins have recently recorded astronomical gains. Most popular include Binance (BNB), Ethereum (ETH), and Tezos (XTZ) which have recorded gains of over 100% since January.

Ethereum Overbought

Specifically for Ethereum, we recently reported that an overbought signal flashed. This meant that the asset could face a major bearish phase if unable to break the next key resistances. At the time, the Ethereum was looking to break above $290, since failing, it has retraced to the $240 position.

Of course, volatility is at a high. This means that movement is drastic and while the market is bearish this hour, this could change in the next. The volatility is especially supported by economic anxiety around the world.

As altcoins continue to bleed and analysts warn against them, Bitcoin is not having it better. Although t has shown relative stability compared to most cryptocurrencies, the crypto king has just breached key support.

In the last few hours, Bitcoin has slipped below the $9,500 support, this could see a retest of $9,000 if $9,300 does not hold. This should be supported by the growing dominance which is now headed for 64%.

Many analysts still expect Bitcoin to bounce out of this stronger and rally and break the $10K psychological position. But for now, the sentiment is low and the market is in real need of a positive trigger to get it rallying again.

Summary

Ethereum [ETH] In Trouble? Analyst Warns Altcoins Could Plunge Further

Article Name

Ethereum [ETH] In Trouble? Analyst Warns Altcoins Could Plunge Further

Description

Ethereum could face more bearish pressure over the coming days. A prominent analyst has warned that altcoins which were overbought will find it hard to get support. This means that a further plunge could be on the horizon for Ethereum

Author

John Kiguru

Publisher Name

CoinGape

Publisher Logo

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram

Crypto Destroyer

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.