An alert has been issued by a well-known crypto analyst regarding Ethereum (ETH), suggesting that the top altcoin is potentially forming a bearish pattern.
During a recent strategy session, crypto trader Justin Bennett informed his 113,200 followers on X that the second largest digital asset by market cap might be developing a diamond reversal pattern, which could see its price drop below $2,500 if confirmed.
“Although I don’t typically trade this pattern, ETH seems to be forming a diamond reversal pattern. The target price is $2,485 if there’s a confirmed close below support. However, nothing is confirmed yet.”
A diamond reversal pattern is a technical analysis indicator that suggests a possible change in the price trend of an asset.
At the time of writing, Ethereum is trading at $2,642, showing a slight increase over the last 24 hours.
Shifting focus to Bitcoin (BTC), Bennett mentioned that the open interest (OI) for BTC has reached its highest point since August, highlighting the $65,800 level as crucial for BTC bulls.
However, Bennett also pointed out that Bitcoin whales are reducing their long positions compared to retail investors, a trend that has historically led to a 10% price drop in Bitcoin.
Bitcoin is currently trading at $67,505, showing a 1% decrease for the day.
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