Altcoins Brace for Significant Sell-Off, Ethereum Potentially an Exception, Suggests Crypto Analyst Nicholas Merten

According to a renowned crypto analyst, a substantial sell-off event is looming for altcoins, but there are indications that Ethereum (ETH), the leading smart contract platform, might remain resilient.

During a recent strategy session, Nicholas Merten, the host of DataDash with a substantial YouTube following of 511,000 subscribers, discussed the potential for a sustained corrective move in altcoins.

"Altcoins currently appear to be poised for an ongoing pullback, and while we are conducting thorough research to identify projects of interest, I must be candid with you all - I do foresee the market continuing to correct."

Nicholas Merten also analyzed Binance Coin (BNB), the native token of Binance cryptocurrency exchange and presently ranked fifth among digital assets. He pointed out that BNB's price action could serve as an indicator for the broader altcoin market.

According to the crypto trader, if BNB fails to hold its market cap level around $30 billion after breaking through a long-term trend line maintained since 2017, a significant correction could be imminent, potentially entering a volatile phase.

As of now, BNB's market cap stands at $37.6 billion.

Despite his cautious stance on altcoins, Merten believes Ethereum might defy the prevailing trend.

"Among all the cryptocurrencies, Ethereum stands out with a more bullish price pattern. Over the last year, it has been forming an ascending triangle, a bullish pattern characterized by a flat range of resistance and ascending lows that align, creating price compression and typically leading to an upward bounce."

However, Merten emphasizes that there are no guarantees with technical patterns, and they are merely working with the available information.

It's important to note that market conditions can change rapidly, and investors should exercise caution and conduct thorough research before making any financial decisions.

At the time of writing, Ethereum is priced at $1,883, with a slight decline observed in the past 24 hours.

Jul 23, 2023