A widely followed crypto analyst says that the market is gearing up for a reversal after making a strong move to the upside.
In a new thread, pseudonymous crypto trader Crypto Capo tells his 132,000 followers on the instant messaging app Telegram that taking profits may be the optimal play as altcoins look primed to crash after a sharp increase.
“Analysis has been playing out as expected. Very strong bullish move. Bitcoin reached $98,000 and went even higher (deviation above probably). Ethereum has reached $2,300. Solana is also at the $170-200 main resistance.
Altcoins have pumped 30%-100% What now? I’m taking more profits here. 50% [took profits] already. Reversal should be strong.”
According to Capo, Ethereum (ETH) – the second-largest digital asset by market cap – has reached its resistance zone and will soon form a local top before making a “strong bearish move.”
“The $1,500 support held and price has now reached the resistance zone of $2,000-2,300. Expecting a local top formation here and then a strong bearish move.”
ETH is trading for $2,290 at time of writing, an 11.5% increase during the last 24 hours. The trader’s chart appears to indicate that Ethereum could dip below $1,200 sometime near June.
However, moving on to ETH rival Solana (SOL), Capo says the smart contract platform could continue its upward momentum as it is outpacing the flagship crypto asset.
“SOL looks ready to reach the main target of $170-200, outperforming BTC. The Solana ecosystem should keep going up.”
Solana is trading for $170.68 at time of writing, a 7% increase during the last day.
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