Despite Ethereum (ETH) recently showing strength, a well-known crypto analyst is leaning bearish on the digital asset. In a new strategy session, Credible Crypto, a pseudonymous crypto trader with 441,400 followers on the social media platform X, warns that Ethereum is approaching a trouble area when compared to Bitcoin (BTC).
Based on the analyst’s chart, it appears that Ethereum’s pair with Bitcoin (ETH/BTC) could potentially fall by up to 20% from its current level.
At the time of writing, Ethereum is trading at 0.0369300 BTC ($3,568).
On the Ethereum/US dollar pair, the analyst suggests that if Ethereum fails to surpass the resistance level around $4,000, the second-largest digital asset by market cap could experience a pullback of approximately 24% from its current level. This would bring prices back to levels last seen in early November.
“A rejection here and a lower high would lead us to weekly demand, which, coupled with a roughly 10% correction on Bitcoin, would create a major buy zone at $2,700-$2,800.”
As for Bitcoin, the analyst believes that the crypto king is poised for a significant price correction before it can continue to rise.
“Obviously, I still believe that we will ultimately reach $100,000+, but the timeline is now changing, and the move below $94,000 has opened the possibility of a larger downside move first (as I have stated many times).”
At the time of writing, Bitcoin is trading at $96,809, up approximately 7% from its one-week low of around $90,700.
Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice.
