A crypto strategist issues a dire warning for Ethereum, believing ETH is about to witness massive downward price action.
Analyst Justin Bennett tells his 111,100 followers on social media platform X that Ethereum is once again testing the diagonal support of an ascending channel pattern.
A rising channel suggests that an asset is printing higher highs and higher lows, but could collapse if the price falls through the lower support.
Says Bennett,
“To say this is an important moment for ETH is a massive understatement.
Probably a rebound here, but I still think we’ll eventually see much lower for Ethereum.”
Looking at the trader’s chart, he appears to do so to predict that Ethereum will fall below the channel’s support and fall all the way to the long-term trendline.
“A possible switch to ETH $700 was my base case last year. We’ll see.”
A move to $700 indicates a drop of more than 69% for ETH from current prices. At the time of writing, ETH is trading at $2,278,
The trader also notes that a looming Fed rate cut this month, which many market participants see as a catalyst for new rallies, is unlikely to translate into sustainable gains.
“The markets are future-oriented. Why should they wait for interest rate cuts to recover? Any rally in risky assets after rate cuts is likely a trap.”
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Generated image: Midjourney
Shutterstock/Tomasz Makowski