Bitcoin, Ethereum, and the rest of the crypto market have been on quite the tear of the past week, with BTC rallying from $6,800 to $8,450 in a matter of a few days. But over the past 48 hours, the crypto market has stalled, with nearly all digital assets posting 8% losses from the local top.
While prices are holding relatively stable at the moment, an analyst has noted that both BTC and ETH are on extremely thin ice.
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Ethereum Needs to Hold This Level
Michael Van De Poppe, a contributor to CoinTelegraph and a noted crypto analyst, recently noted that Ethereum is effectively on the edge of a cliff at the moment, per his analysis.
He noted that if the second-largest cryptocurrency manages to break below $133 — a mere 2.5% below current levels — on a daily basis, meaning that it will have to turn that area into resistance, a move to $100, maybe even lower, could be had.
$BTC #BITCOIN & $ETH #ETHEREUM
Still, basically two scenarios I’d be watching.
Holding $7,500-7,600 on $BTC and we could look at $9,500.
Losing $7,500-7,600 and I feel we’re accelerating towards $5,800 or $6,400.
Similar with $ETH, losing $133 -> $100 on the table. pic.twitter.com/m9wR1lDsrf
— Crypto Michaël (@CryptoMichNL) January 10, 2020
Van De Poppe, who is also a full-time trader at the Amsterdam Stock Exchange, noted that $133 is an extremely important horizontal support, for it acted as support last April and in November of last year.
While he did present a harrowing price action, he noted that if $133 can be held, a move 20% to 35% could be had in the coming months.
Bearish Catalysts Exist
While a drop to $133 seems somewhat far away, there is a notable bearish catalyst.
Just recently, Whale Alert, a Twitter account dedicated to tracking suspicious blockchain transactions, posted the tweet below. In it, the account indicated that 1,130 ETH, worth around $153,000 as of the time of writing this, was transferred from a wallet operated by those involved in the $50 million Upbit Ethereum hack to an unknown wallet.
⚠️ 1,130 #ETH (153,068 USD) of stolen funds transferred from Upbit Hack Nov 2019 to unknown wallet
— Whale Alert (@whale_alert) January 10, 2020
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