Cryptocurrency Analyst Warns of Massive Depreciation for Ethereum Against Bitcoin
Cryptocurrency analyst and trader Ali Martinez has raised concerns about the future of Ethereum (ETH) in comparison to Bitcoin (BTC), suggesting a significant depreciation for the altcoin.
Bearish Patterns Signal Trouble for Ethereum
Martinez shared his insights with his followers on the social media platform X, highlighting a bearish pattern forming against Bitcoin on the monthly chart. According to his analysis, Ethereum could potentially drop by a staggering 91% from its current level.
Referencing an inverted chart of the ETH/BTC pair, Martinez indicated the emergence of a double-top pattern or an M pattern on the monthly timeframe, both of which are considered bearish reversal patterns.
He suggested, “From this angle, the ETH/BTC trading pair could be heading to 0.0020 BTC!”
Currently, Ethereum is trading at 0.02205 BTC ($1,866).
Whale Activity and Network Trends
Highlighting data from crypto analytics platform Santiment, Martinez pointed out that Ethereum whales have been actively selling off their holdings. Over the past two weeks, these whales have offloaded 760,000 ETH, amounting to approximately $1.42 billion at current market prices.
Furthermore, Martinez noted a significant decline in whale activity on the Ethereum network over the past five weeks, indicating a possible shift in market dynamics.
Bitcoin’s Resistance Levels and Moving Averages
Shifting focus to Bitcoin, Martinez observed that the leading cryptocurrency recently dropped below the 200-day and 50-day moving averages. These moving averages are now acting as resistance levels for Bitcoin, with a potential death cross formation looming on the horizon.
He commented, “Bitcoin faces the 200-day MA at $86,200 and the 50-day MA at $88,300 as key resistance ahead! A break above these levels could shift momentum back to the bulls.”
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Generated Image: Midjourney