Analyst Smart Contracter warned that Ethereum (ETH) and the Binance native token (BNB) could see sharp declines in the coming days.
The analyst, who predicted the bitcoin (BTC) bear market in 2018, claimed that ETH continues to show a major bearish pattern.
Through a message on his Twitter account, Smart Contracter wrote that Ethereum again presents a “bear pennant” on its charts, even though it already broke a big one last week.
“Definitely not looking good. Looks like the easy mode of the last few months is over for now,” he noted.
— Bluntz (@SmartContracter) March 3, 2023
The bear pennant is a pattern on trading charts that forms when market trends enter a state of consolidation to adjust new prices downward.
Last week, Ethereum failed to hold at the $1,670 resistance zone and failed in several attempts to hold above that level, leading to a drop below $1,600.
Like Bitcoin, ETH seems to be affected by the negative news that emerged within the crypto ecosystem in recent weeks, such as regulatory scrutiny in the U.S. and the collapse of the shares of the crypto-friendly bank, Silvergate Bank.
At the time of writing (15:17 UTC), Ethereum accumulated losses of 5.46% in the last seven days, to trade at $1,547 after a -1.58% decline in the last 24 hours.
BNB hit by Binance problems
The analyst noted that BNB looks “absolutely horrible” for the next few days, due to the fact that it is showing a bearish head-and-shoulders pattern on the weekly chart.
“BNB looks absolutely horrible in the USD (dollar) pair. The US is targeting Binance in a big way and it is reflected on the chart,” highlighted Smart Contracter.
I think the 5 year uptrend in bnb/btc has come to an end, imo it comes down at minimum another 40-50% from here.
Genuinely dont even know where that would put the bnbusd price but ill be avoiding this coin like the plague from here.
GL if you hold it pic.twitter.com/6Zrq1hHCsU
— Bluntz (@SmartContracter) December 16, 2022
The head and shoulders pattern in trading is a reversal signal that indicates a downtrend on the charts and helps traders identify a future reversal after the end of a bullish rally.
Binance has been under the investigative radar of U.S. regulators for possible regulatory non-compliance, violation of the Investor Protection Act, and violation of anti-money laundering rules.
Three U.S. senators even asked the exchange for details on its money laundering controls, accusing it of being a “hotbed of illegal financial activity.”
According to the Wall Street Journal, the lawmakers sent a letter on March 1 to the exchange’s CEO, Changpeng “CZ” Zhao, demanding details of the company’s balance sheets since 2017, internal procedures, and any communications about Zhao’s alleged efforts to limit compliance.
This situation affected the price of its utility token, BNB. Binance’s cryptocurrency accumulated losses of 5.55% in the last seven days and is trading at $287, with a timid advance of 0.42% in the last 24 hours, by the time of writing.
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