A widely followed crypto analyst believes a monumental collapse is in store for smart contract platform Ethereum (ETH).
In a new video, analyst Nicholas Merten tells his 512,000 YouTube subscribers that Ethereum had more than a year to break out of the ascending triangle pattern.
According to Merten, Ethereum’s inability to convincingly rise above the bullish formation resistance indicates that ETH is weak and likely headed for much lower levels.
“Ethereum cannot go on record. People keep getting shot [at around] $2,000, and that’s okay for a while. But ultimately you should be able to either break out to the upside, or if you break the rising line of support to the downside, that means bad news. That’s a failed technical pattern…
So if we don’t get a bid here, it means we’ll likely head to $1,100 – the previous support range – or head to $890 just like we were here in June.
Or even worse, maybe our scenario of somewhere between $300 and $500 Ethereum isn’t too bearish at all. Maybe it’s not that far away.”
At the time of writing, Ethereum is trading at $1,597, slightly below the diagonal support of Merten’s ascending triangle pattern.
Merten is not the only analyst sounding the alarm about a possible Ethereum crash. Crypto strategist Benjamin Cowen previously said it is possible for ETH to plunge to a low of $400.
“The chance is high [there will] be a lower low, and it might not be a much lower low, it might just drop to just under $800. It could be lower. It could go to $600, $500 or $400, but that is in the cards for Ethereum.”
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Generated image: Midjourney