An analyst has warned Ethereum (ETH) that it is in danger of losing its value, while other altcoins could also be affected.
A new YouTube strategy session was held by Nicholas Merten, a crypto strategist. He told his 512,000 subscribers in a video that Ethereum is currently on a downtrend and the 200-week moving mean continues to act as resistance.
“Even though Ethereum has held up relative neutral against where it was in May 2021, it is still on a downward trend… We think this chart will start to decline very soon.
Ethereum is well below its 200-day moving mean and its 200-week moving average. Since November 2022, when FTX collapsed, we have been below this range. We’ve followed the same pattern since June. The 200-week moving average has started to serve as resistance.
He warned that a relief rally would not be sustained unless Ethereum moves above the 200-week moving mean and trades at 15% to 30% of its current value between the price levels of $1,470 and $1.668. At the time of writing, Ethereum was valued at $1253.
“I am arguing that any relief rally or movement up that takes us towards that range should not be taken lightly. It will serve as resistance. Not to mention that the 200-day range is very close to that. These indicators support us until we get over that range. Which to me would be fascinating. I remain bearish.
Merten warns other altcoins could collapse under current market conditions. He says they are too expensive.
If you have been around crypto investing and trading since 2016, you will know that there have been a few market cycles. You also probably remember that many of the high-value altcoins that once topped the leaderboard for top cryptos are no more. They are now a thing of the past. Many investors have yet to learn the lesson. Unfortunately, a lot of altcoins today will not be.”