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Analyst Prepares to Short Ethereum if Critical Support is Broken

Published 10/09/2023, 09:35
Updated 10/09/2023, 09:45
Analyst Prepares to Short Ethereum if Critical Support is Broken
ETH/USD
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ETH/USD
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  • Renowned crypto analyst Crypto Tony thinks Ethereum is sitting on critical support.
  • Tony’s next move will be determined by what happens at that level.
  • The analyst plans to short Ethereum if it lost its balance on the current support.

Renowned cryptocurrency analyst Crypto Tony thinks Ethereum is sitting on critical support, and his next move will be determined by what happens at that level. In a recent post, Tony noted that he would short the flagship altcoin if it lost its balance on the current support.

Tony shared a screenshot showing that ETH/USDT on the 4-hour chart has predominantly traded within a pronounced range. From the shared screenshot, ETH/USDT traded between the $1,620 lower price and the $1,700 higher price mark. However, the price has remained around the lower range, testing the support several times.

The bulls have rejected multiple attempts by Ethereum to break below the lower support. Tony’s chart showed that on several occasions, ETH’s price moved below the support level but failed to close underneath it. Instead, after falling below the support, the 4-hour candles repeatedly climbed above it before closing.

Tony’s pictorial representation did not support only a downward price movement. As indicated, climbing above the $1,700 price would flip the ETH/USDT narrative and initiate a bullish run. However, the pair’s recent price action suggests the likelihood of a bearish trend. Hence, Tony’s preparation to short the crypto pair if it breaks out to the downside.

Ethereum is the largest altcoin by market capitalization and a big brother in the altcoin market. Along with Bitcoin, Ethereum has a significant influence on the price trajectory of other altcoins in the crypto market. Hence, most crypto analysts pay attention to developments in the Ethereum market at such critical periods.

Ethereum traded for $1,625 at the time of writing, attempting to break below the support established on June 23, 2023. The flagship altcoin has remained in a significantly tight range since the beginning of September. Most analysts believe Ethereum’s next move will be critical to how the crypto market will develop for the rest of the year.

The post Analyst Prepares to Short Ethereum if Critical Support is Broken appeared first on Coin Edition.

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