A closely watched crypto analyst is warning investors that smart contract platform Ethereum (ETH) could fall as much as 26%.
Pseudonymous crypto strategist Credible Crypto tells Its 402,300 followers on the social media platform
The analyst looks at ETH’s open interest (OI) – which tracks the total number of outstanding derivative contracts for a given asset – and believes it remains overweight despite Thursday’s price drop.
“If we look at OI in currency terms (below), we can see that the big flush in terms of positioning has not really happened yet. OI has just fallen in monetary terms because the price has fallen.
The real flush in positioning probably happens a little lower. My bet would be somewhere between $2,200 and $2,700. Look for that flush on OI (in currency terms) as we push into this zone.”
Ethereum is trading at $3,002 at the time of writing, down more than 4% in the past 24 hours.
The analyst too warns that memecoin Pepe (PEPE) could fall in price.
“PEPE appears to have completed its drift at the highest values in the range and has regained acceptance within the range. Now [it’s] focused on the lows of the range and realistic below… Some alts are hit harder than others.
Alts like PEPE that have a lot of open air below have minimum downside targets of 30%-40% lower (lows on PEPE) with potential for 60%-70% lower before their bigger corrections pass (breakdown of lows for PEPE). For other alts that have already been beaten to a pulp, 30%-40% may be the maximum drawdown (in some cases even less).
Looking at his chart, the trader suggests that Pepe could fall below $0.00000400.
Pepe is trading at $0.000008656 at the time of writing, down 7.5% in the last 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on X, Facebook And Telegram
Surf to the Daily Hodl mix
[v2snippetminusbit]
Generated image: DALLE3
