A closely followed crypto analyst is warning traders that smart contract platforms Ethereum (ETH) and Solana (SOL) are poised to resume their downtrends.
Pseudonymous trader Pentoshi tells his 514,500 Twitter followers that the inability of bulls to push Ethereum above resistance of $3,100 puts ETH at risk of revisiting its macro range lows below $2,000.
“ETH for now bera retest from [the] underside after a 50% bounce from $2,200. Can we get the bearlin wall? March is the key to all.”
Pentoshi is referring to the possibility that the Federal Reserve will increase interest rates in March to tame inflation. The crypto strategist suggests that traders should practice caution in the coming weeks as there’s a lot of uncertainty in the macro-environment.
“Ball in Fed’s court.
I still truly believe having caution for March is strongly warranted. This market isn’t going anywhere.
The situation the Fed is in is unprecedented, and we are yet to know how these changes will truly impact markets.
Just be safe. That’s it.”
Looking at Solana, Pentoshi says he expects SOL to revisit $80 after rejecting at $120. A move below $80 will likely drive Solana down to $50, according to the analyst.
“Let’s build some decent market structure for the year ahead and fill out the areas where no support was formed.”
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