Ethereum and Binance Coin Could Witness Significant Price Drops, Analyst Warns
A crypto strategist with a notable following for accurately predicting the 2018 Bitcoin bear market bottom has indicated that Ethereum (ETH) is showing signs of bullish exhaustion.
The pseudonymous analyst, known as Bluntz, shared with his Twitter followers that Ethereum may have recently formed a bearish lower-high pattern when it reached approximately $2,000 last week.
Based on Bluntz’s chart, it appears that a short-lived rally is expected for ETH in the coming days, followed by a correction all the way down to $1,700.
Bluntz expressed his perspective on Ethereum, stating that it doesn’t appear to be performing well at the moment. He pointed out a clear five-wave decline, followed by a slow three-wave recovery to the 0.618 Fib level, where another significant sell-off occurred.
This suggests a lower high formation, and Bluntz anticipates a potential price drop to $1,700, at which point he will re-evaluate the situation.
i dunno abouyt yall but $eth definitely is not looking too crash hot to me.
clear 5 wave decline, slow 3 wave move back up to the 0.618 fib where we had another savage selloff.
this is screaming lower high to me.
i think 1700 probably next stop where ill re evaluate pic.twitter.com/TUgj3bUoYJ
— Bluntz (@Bluntz_Capital) May 7, 2023
As of the time of writing, Ethereum is being traded at $1,852.
Bluntz is also keeping a close watch on Binance Coin (BNB), the utility token of the world’s largest cryptocurrency exchange. According to him, BNB appears to be in a bearish trend against both the USD and BTC pairs.
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He noted the loss of a significant support level on both the BNB/USD and BNB/BTC pairs, suggesting a strong downtrend. It seems that the market is factoring in certain events, such as a potential FTX clawback or increased regulatory pressures. While not entirely certain, Bluntz expressed a negative outlook on the situation.
pretty key structure is being lost on #bnb usd pair and bnb/btc pair in a monster downtrend already.
feels like the market is trying to price something in on this pair, probs an ftx clawback or more regulatory bodyslams, not sure but it doesn't look too crash hot to me.$bnb pic.twitter.com/QYGJlgJh96
— Bluntz (@Bluntz_Capital) May 3, 2023
Based on Bluntz’s chart analysis, a correction for BNB towards the $260 price range is anticipated. Currently, BNB is valued at $313.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
