A widely followed crypto analyst is issuing a warning about Ethereum (ETH), saying the top altcoin appears to be forming a bearish pattern.
In a new strategy session, crypto trader Justin Bennett tells According to its 113,200 followers on social media platform
“It’s not a pattern I trade, but ETH could form a diamond reversal pattern. The target is $2,485 if confirmed with support nearby. Nothing has been confirmed yet.”
A diamond reversal pattern is a technical analysis indicator that signals a potential trend change in the price of an asset.
Ethereum is trading at $2,642 at the time of writing, up fractionally over the past 24 hours.
We move on to Bitcoin (BTC), Bennett say that open interest (OI) – or the total number of derivative contracts closed on an asset – is the highest since August and identifies the $65,800 level as a “must hold” for BTC bulls.
Bennett, however, goes further remark that Bitcoin whales now appear to be unwinding their long positions versus retail, which has historically led to the key digital asset experiencing a 10% price drop.
“I hate to be the ‘bear’ of bad news, but BTC whales are reducing long positions versus retail. The last few times we saw this, Bitcoin dumped more than 10%. It’s still early, so this could change, but it’s worth mentioning.”
Bitcoin is trading at $67,505 at the time of writing, down 1% on the day.
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Featured image: Shutterstock/IM_VISUALS/monkographic
