Ethereum [ETH] In Trouble? Analyst Warns Altcoins Could Plunge Further

By John Kiguru
Published February 25, 2020 Updated February 25, 2020
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Ethereum [ETH] In Trouble? Analyst Warns Altcoins Could Plunge Further

By John Kiguru
Published February 25, 2020 Updated February 25, 2020

The crypto market has been all red. This has been the trend for the last couple of days. Although the drop has been moderate, most digital assets are trading just above key supports and are at risk of an extended plunge. One prominent analyst believes that the worst isn’t over and a couple of coins will see a further drop before finding meaningful support.

The Higher The Rally, The Deeper The Drop

Popular analysts ‘The Wolf Of All Streets who goes by Twitter handle, @scottmelkel, has been warning that a number of coins could be headed deep under. He notes that the coins that had the highest gains are the same that were overbought. They will be crashing hard as they struggle to find support.

He does not specify which coins these are. But a number of altcoins have recently recorded astronomical gains. Most popular include Binance (BNB), Ethereum (ETH), and Tezos (XTZ) which have recorded gains of over 100% since January.

Ethereum Overbought

Specifically for Ethereum, we recently reported that an overbought signal flashed. This meant that the asset could face a major bearish phase if unable to break the next key resistances. At the time, the Ethereum was looking to break above $290, since failing, it has retraced to the $240 position.

Of course, volatility is at a high. This means that movement is drastic and while the market is bearish this hour, this could change in the next. The volatility is especially supported by economic anxiety around the world.

As altcoins continue to bleed and analysts warn against them, Bitcoin is not having it better. Although t has shown relative stability compared to most cryptocurrencies, the crypto king has just breached key support.

In the last few hours, Bitcoin has slipped below the $9,500 support, this could see a retest of $9,000 if $9,300 does not hold. This should be supported by the growing dominance which is now headed for 64%.

Many analysts still expect Bitcoin to bounce out of this stronger and rally and break the $10K psychological position. But for now, the sentiment is low and the market is in real need of a positive trigger to get it rallying again.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Kiguru
67 Articles
John is an outstanding writer with a great love for cryptocurrency and its underlining technology. Kiguru is an astute believer in cryptocurrency and blockchain technology and looks up to exploring digital innovation. Follow him on Twitter @Shawn254Guru

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