A prominent cryptocurrency analyst is sounding the alarm on Ethereum (ETH), suggesting that the popular altcoin may be showing signs of a bearish pattern. In a recent update, crypto trader Justin Bennett shared with his 113,200 followers on X that Ethereum, the second-largest digital asset by market cap, could be forming a diamond reversal pattern. This pattern, if confirmed, could potentially push Ethereum’s price below $2,500.
While Bennett noted that he doesn’t typically trade this pattern, he highlighted the potential downside risk for Ethereum. As of the time of writing, Ethereum is trading at $2,642, with a slight increase in the last 24 hours.
Moving on to Bitcoin (BTC), Bennett pointed out that the open interest for the leading cryptocurrency is currently at its highest level since August. He emphasized the importance of the $65,800 level as a crucial support level that BTC bulls need to hold. However, Bennett also mentioned that Bitcoin whales, or large holders of BTC, are reducing their long positions compared to retail investors. Historically, this has led to a 10% price decline for Bitcoin.
Bitcoin is currently trading at $67,505, with a 1% decrease on the day. Bennett’s observation regarding the behavior of Bitcoin whales versus retail investors suggests a potential bearish trend for the flagship cryptocurrency.
In conclusion, the cryptocurrency market is showing signs of potential volatility, with Ethereum and Bitcoin both facing uncertainties. Traders and investors should closely monitor these developments and stay informed about market trends to make informed decisions. Stay updated with the latest news and analysis by subscribing to receive email alerts and following The Daily Hodl on social media platforms like X, Facebook, and Telegram.
As always, it’s essential to stay informed and vigilant in the ever-evolving cryptocurrency market. Stay tuned for more updates and analysis to navigate the dynamic world of digital assets.
(Source: Justin Bennett/X)
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