According to crypto expert Ali Martinez, Ethereum 
$2,340 has entered a notable technical formation against Bitcoin 
$74,691. His analysis, based on monthly chart data, indicates a strong bearish signal for the Ethereum-Bitcoin pair. Specifically, Martinez highlights the emergence of a “double top” formation, suggesting that investors should exercise caution. This analysis is underpinned not just by technical indicators but also by on-chain data. Recent activities of large investors on the Ethereum network reveal that the market is struggling to gain upward momentum.
Noteworthy Formation in Ethereum-Bitcoin Pair
Martinez emphasizes that the most critical point is the formation of a double top in the chart of Ethereum against Bitcoin. This model, analyzed on a monthly basis, is typically interpreted as a precursor to severe declines. According to the analyst, the current chart structure indicates that Ethereum could potentially experience a 91% loss in value. If such a decline occurs, Ethereum’s value against Bitcoin could drop to around 0.0020 BTC.
This formation is also known as the “M formation” in technical analysis literature and generally signals that the market is preparing to change direction. The prolonged visibility of such a model in long-term charts may heighten selling pressure among investors. Martinez notes that this scenario is effective both technically and psychologically.
The weakening outlook of Ethereum against Bitcoin since the beginning of 2024 strengthens the basis of this analysis. It is advised that investors remain vigilant against such chart formations.
Heavy Selling by Whales, Declining Activity
On the Ethereum front, not only technical indicators but also whale movements are sending alarming signals. According to Martinez’s analysis, a total of 760,000 ETH has been sold by large wallets over the last two weeks. This amount corresponds to approximately 1.42 billion dollars in current market value. Such substantial sales may suggest a decline in confidence towards Ethereum in the short term.
Additionally, on-chain data shows a 63.8% decrease in ETH transfers classified as large transactions over the last five weeks. This decline might indicate a drop in interest towards Ethereum in the broader market. A decrease in large transactions typically signifies low liquidity and market stagnation.
Martinez argues that this low activity level on the Ethereum network is not merely a temporary situation but rather a sign of deteriorating market sentiment. The combination of aggressive selling by whales and reduced trading volume increases the likelihood of price pressure on Ethereum.
Monitoring Critical Resistance Levels for Bitcoin
In his technical evaluations for Bitcoin, the analyst highlighted two key moving averages. The 200-day moving average for Bitcoin is at $86,200, while the 50-day average stands at $88,300. These two levels currently serve as strong resistance points.
According to Martinez, if Bitcoin surpasses these levels, it could initiate a new upward momentum in the cryptocurrency market. However, if these points are not broken, a cautious stance is expected to persist in the market. Particularly, Ethereum’s weak appearance and low market activity are among the factors putting pressure on the overall atmosphere.
Breaking these resistances by Bitcoin could contribute to the emergence of positive signals in altcoins like Ethereum. However, given the current scenario, it is crucial for investors to act while carefully considering both technical and on-chain data.
