Cryptocurrency analyst and trader Ali Martinez believes Ethereum (ETH) is primed to depreciate massively against Bitcoin (BTC).
Martinez tells his 134,700 followers on the social media platform X that Ethereum is forming a bearish pattern against Bitcoin on the monthly chart.
According to Martinez, Ethereum could plummet by 91% from the current level.
Based on an inverted chart of the ETH/BTC pair, the analyst appears to be suggesting that the pair is forming a double-top pattern or an M pattern on the monthly time frame. A double-top pattern is a bearish reversal pattern.
“From this angle, the ETH/BTC trading pair could be heading to 0.0020 BTC!”
Ethereum is trading at 0.02205 BTC ($1,866) at time of writing.
Citing data from crypto analytics platform Santiment, Martinez says that Ethereum whales sold 760,000 ETH, worth approximately $1.42 billion at current prices, over the past two weeks.
The crypto analyst and trader also says that during the last five weeks, whale activity on the Ethereum network has plummeted.
“Since February 25th, the number of large Ethereum transactions has declined by 63.8%, signaling a drop in whale activity on the network.”
Turning to Bitcoin, Martinez says that after the crypto king plunged below the 200-day and 50-day moving averages (MA) recently, the two moving averages are acting as resistance levels. Based on the analyst’s chart, it appears he’s suggesting that Bitcoin is on the cusp of forming a death cross, a bearish indicator that occurs when the 200-day and 500-day moving averages converge.
“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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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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