A popular crypto trader thinks things will get worse for leading smart contract platform Ethereum (ETH) before they get better.
Pseudonymous analyst Bluntz tells his 224,700 followers on social media platform X that ETH will likely continue its bearish price action in the coming weeks before showing any sign of strength.
According to the trader, ETH probably will print a double bottom reversal structure on the daily chart, before ending the correction and rally.
“Nice breakdown ETH ‘at night. I’m still targeting around $1,440, but I’ll be watching for signs of a reversal sooner.”
Bluntz too shares a chart showing that Ethereum could rise as high as $2,500 after the reversal.
Bluntz applies Elliott Wave theory in his analysis, an advanced technical analysis approach that attempts to predict future price action by monitoring the psychology of the crowd, which tends to appear in waves. According to the theory, an asset typically goes through a five-wave movement before the trend is reversed.
Looking at the trader’s chart, he appears to be predicting that the fifth and final wave of the correction will end at $1,440. However, Bluntz warns that his wave count will be invalidated if ETH manages to bounce to $1,622 before reaching its downside target.
“One thing I don’t want to see to maintain the bearish bias is a move back into the range and above $1,622.”
ETH is trading at $1,549 at the time of writing. The second-ranked crypto asset by market capitalization is down 4% in the past 24 hours and 5% in the past week.
While Bluntz predicts a quick recovery for ETH once the leading altcoin reaches $1,440, crypto trader Benjamin Cowen is not so optimistic.
Cowen told his 787,000 YouTube subscribers this weekend that a massive freefall could be possible for the digital asset.
“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