A closely tracked crypto analyst is predicting the imminent collapse of Ethereum as he says ETH appears to be closely mirroring its 2018 market structure.
Kevin Svenson tells his 107,800 Twitter followers that Ethereum recently breached its long-term diagonal support that has kept the market bullish for about a year.
According to Svenson, the bearish move is reminiscent of Ethereum’s price action in 2018 when it also took out its upward trendline and lost nearly 80% of its value in just a few months.
“This ETH fractal is playing out.”
At time of writing, Ethereum is changing hands for $1,358, down nearly 10% in the past day.
With Ethereum now trading below its previous cycle high of $1,420, Svenson believes that ETH, Bitcoin (BTC) and the rest of the crypto markets could witness an extended bear market.
“ETH, BTC and crypto, in general, could easily see another 140 days +/- of sideways bear market action.
This is standard in these conditions.
Using the 128-week simple moving average and [the] 50-week exponential moving average as a comparison from the previous cycle for a rough estimate.
Human behavior doesn’t repeat but it rhymes… Look how much time we spent below the (orange)128-week simple moving average in the last cycle. Even if we just did half of that means we got at least a year to spend in consolidation.”
As for Bitcoin, Svenson says BTC is still in a long-term uptrend despite the bearish price action over the last few months.
“Bitcoin’s macro trend situation still looks good. If you are looking at this from a trend/growth perspective we are making progress.”
Looking at Svenson’s chart, BTC appears to be trading within a descending channel with a long-term support line at around $20,000.
At time of writing, Bitcoin is trading at $25,813, down over 8% in the past day.
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