Investors should brace for potential short-term losses in the altcoin market.
In recent months, Roman Trading had accurately anticipated Bitcoin’s price declines, but this month, they were taken by surprise. Although they correctly foresaw a drop at the beginning of the month, expecting a more profound plunge, Bitcoin $118,996 instead reached new all-time highs. Presently, attention has turned to Ethereum $3,696, providing insights for those anticipating an altcoin rally.
ContentsEthereum Price AnalysisETHBTC Chart Analysis Ethereum Price Analysis
Analyzing the RSI and MACD indicators, the analyst had previously predicted further declines for Bitcoin. However, the new all-time highs and the strong current price have temporarily convinced him otherwise. For investors waiting on altcoins, the analysis focuses on Ethereum’s daily chart. While the current environment is not ideal for entry, further increases could follow a brief pause.
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“The daily ETH chart has shown excellent performance so far, but I’m hesitant to buy at this point, as there seems to be excessive buying, indicating a possible need for consolidation or correction before further rises. Once the $4,000 resistance breaks, an ETH rally will commence.”
This suggests that altcoins may undergo a period of consolidation, after which the journey to the true peak could begin. A target of $3,400 for ETH could cause up to 20% losses in most altcoins.
ETHBTC Chart Analysis
The anticipated test of the 0.033BTC level was predicted well before the pair exceeded 0.027 levels. Sustained closures above 0.027BTC and the ongoing journey toward the 0.05 target are crucial. Investors have engaged in some selling in altcoins, fearing the last daily candle’s reversal. However, without losing the 0.02957 level, discussing a local peak formation is challenging.
After days of steady rises, the ETHBTC pair could again aim for the resistance point following a brief pause. However, as highlighted by Roman Trading, a more extended break is not surprising, even in the USD pair.
Investors must consider the risk of double-digit losses in the short term for altcoins. Properly setting stop regions and preparing for a larger withdrawal, potentially triggered by a possible BTC decline, is essential. Of course, this pertains to short-term traders. In contrast, many analysts maintain a long-term bullish outlook, and short interruptions over days or weeks may not affect them.
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