Benzinga - Pseudonymous cryptocurrency trader Altcoin Sherpa sees Ethereum (CRYPTO: ETH) as “the perfect mid trade” in this bull run, calling its chart “just sad.”
What Happened: On Tuesday, the trader took to X (formerly Twitter) to highlight that he does not see a reversal for the second-biggest cryptocurrency any time soon:
$ETH: This chart is just sad. We have yet to see eth outperform $btc at all this cycle and it's been a slow bleed down. I don't see any reversal coming anytime soon either. It's been said before, but ETH might be the perfect 'mid' trade this cycle.left curve = SOL
right= BTC… pic.twitter.com/xkJkbmPaPk
— Altcoin Sherpa (@AltcoinSherpa) April 2, 2024
Another heavily-followed trader, ColdBloodedShiller, discussed the recent performance of Ethereum, noting that this is the first time in six weeks that ETH has convincingly lost the RSI 50 level, a significant marker in the crypto market.
He further noted that such crosses in the RSI are crucial measures of market momentum and can guide investors in their approach to position building. The trader advised patience, suggesting that investors build slowly over time on the way down.
See Also: Dogecoin’s 35% Monthly Gains And ‘Elon Musk Effect’ Means It’s ‘Probably Going To Do Something Silly Like Go To $1,’ Says Trader
Why It Matters: The comments come at a time when Ethereum is facing a significant correction. The asset is down 6% over the past 24 hours, trading around $3,250 at the time of writing.
On Monday, crypto analyst Ali Martinez had expressed concern over Ethereum's recent price drop. Martinez predicts a further correction to $2,800 if Ethereum fails to hold its $3,400 support level.
The correction coincides with a market-wide downturn, less than three weeks ahead of the Bitcoin halving.
ColdBloodedShiller’s analysis provides a broader perspective on Ethereum’s market momentum, emphasizing the importance of patience and strategic position-building in the face of potential price corrections.
What’s Next: The appeal of Ethereum as an institutional asset class is a topic expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin’s 6% Drop Prompts Peter Schiff Commentary – ‘It’s A Fake Asset’
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