A top trader who bottomed Bitcoin (BTC) last year says Ethereum (ETH) may see a deep devaluation before a cycle bottom is reached.
In a new episode of the TechnicalRoundup, crypto analyst DonAlt tells his 53,300 YouTube subscribers that Ethereum may be on the verge of a collapse against Bitcoin (ETH/BTC).
According to the analyst, he would rather see the ETH/BTC pair experience a massive sell-off than slowly decline for months.
“Overall, ETH/BTC is accelerating [to the downside] now – as it has been for the past few weeks – which I think is good. It’s better than the bleeding we had before.
The more this speeds up, the closer we are to the bottom, I think. But if this accelerates even more than what it has already done, the biggest pain is obviously yet to come. For the people who still own it, that’s obviously not great in terms of price. But time-wise, I like it better when it speeds up, like you see big, big candles… I would think we are at most two weeks away from bottoming out.
Whereas when you see these little candles continually going down, you think this can continue for the next six months.
I would prefer this to accelerate even more, because then it starts to look like capitulation.”
DonAlt says he wants to accumulate Ethereum once ETH holders capitulate.
“If this starts to capitulate and start putting in stupid prices, like when you look at the graph and people are really stupid right now, then I’m down. I think that would be 0.047 BTC ($1,232) – something like that. That’s where it starts to get stupid and that’s where I would be done even if the story isn’t there.
At the time of writing, ETH/BTC is trading at 0.06022 BTC worth $1,578. A correction towards DonAlt’s price target indicates a downside potential of more than 21% for ETH/BTC.
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Generated image: Midjourney