Top Analyst Warns ETH and ADA Traders of Catastrophic Price Risks
A prominent analyst and trader warns that the native token prices of smart contract platforms Ethereum and Cardano will undergo deep corrections. Analyst Capo predicts ETH to fall to $1,400 after being rejected at resistance around $3,000.
At the time of writing, ETH is trading at $2,612, down more than 15% from its 7-day high of $3,189.
Observing the Cardano project, Capo noted that ADA found support at $0.50 after bears broke the $1 support.
“Nearest support is at $0.50.”
At the time of writing, ADA is trading at $0.97. Under Capo’s scenario, a move to $0.50 means a potential drop above 48%.
Capo is also keeping an eye on Ethereum competitor Fantom (FTM). He stressed that the altcoin has now confirmed its bearish thesis and is on track to reach its $0.95 target.
For Bitcoin, he looks at the crypto king’s heatmap. This chart tracks supply and demand by visualizing the market’s order book.
According to the analyst, Bitcoin will trigger another selloff event as the heatmap reflects limited demand.
“The low demand is weakening and the supply is increasing. Horizontal = correction. Hopefully there will be more downtrends soon.”
Capo also expects BTC to eventually lose support around $30,000.
“Low timeframe trend: rally to $43k-$44k (done).
Low/Medium Timeframe Trend: Decline to $38k – $39k (done).
Medium time frame trend: drop below $30K (probably $21K – $23K) (pending).”
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