Analyst Who Nailed 2018 Bitcoin Bottom Issues Ethereum Update, Says Altcoin Markets Primed for Volatility
The crypto strategist who accurately called Bitcoin’s (BTC) 2018 bottom is telling Ethereum (ETH) holders that the leading smart contract platform is set up for a significant correction.
Pseudonymous analyst Smart Contracter tells his 213,900 Twitter followers that Ethereum completed a five-wave rise on the lower timeframe and is now poised for at least a 15% retracement from its recent high.
“I suspect it pulls back about 15%-20% from here peak to trough.”
Smart Contracter is a popular practitioner of the Elliott Wave theory, an advanced technical analysis approach that follows crowd psychology that tends to manifest in waves. According to the theory, assets typically correct after a five-wave rally.
Looking at the analyst’s chart, he sees Ethereum falling back below $1,400 before bouncing toward his target of $1,900.
At time of writing, Ethereum is trading for $1,470, down 3.35% on the day.
The crypto strategist is also keeping an eye on FTX’s Altcoin Index Perpetual Futures chart, which tracks the price of a basket of large-cap crypto assets other than Bitcoin. According to Smart Contracter, the index also completed a five-wave rise and is now setting up for a correction, suggesting that large-cap altcoins are likely headed to lower levels.
“Beautiful 37% rally for alt perp out of that falling wedge but five up on daily now done. So expecting a decent pullback from here. Would be exiting here myself if I was still in and waiting for a decent pullback.”
The crypto strategist also has his radar locked on Ethereum rival Solana (SOL), which he says now looks bearish after its weekly close.
“And this is why I was waiting for the weekly close. All within 24 hours, the SOL/BTC weekly went from looking amazing to absolute garbage.
At time of writing, SOL is valued at $27.19, down over 16% on the day.
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