A closely followed crypto analyst and trader is warning traders that smart contract platforms Ethereum (ETH) and Cardano (ADA) are due for deep corrective moves.
Pseudonymous analyst Capo tells his 244,000 Twitter followers that he sees Ethereum dropping all the way down to $1,400 after rejecting at resistance around $3,000.
At time of writing, Ethereum is trading at $2,719, down nearly 15% from its seven-day high of $3,189.
Looking at Cardano, Capo says he sees ADA finding support at $0.50 now that bears breached support at $1.00.
“Next level of support is like $0.50.” At time of writing, Cardano is exchanging hands at $0.97. Should ADA follow Capo’s script, a move to $0.50 represents a downside potential of over 48%.
Capo is also keeping a close watch on Ethereum competitor Fantom (FTM), which is he says has now validated his bearish thesis and is en route to his target at $0.95.
As for Bitcoin (BTC), Capo says he’s looking the king crypto’s heatmap, which tracks supply and demand by providing a visual representation of the market’s order book. According to the crypto analyst, he sees Bitcoin igniting another sell-off event as the heatmap is showing limited demand.
“The little demand that was there is getting weaker and supply getting stronger. Sideway move = correction Expecting more downside soon.”
Capo also says that he expects BTC to eventually take out support around $30,000.
“Low timeframe bias: bullish to $43,000-$44,000 [done].
Low/mid timeframe bias: bearish to $38,000 – $39,000 [done].
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