Crypto strategist issues dire warning on Ethereum, believing ETH is on the verge of a massive price drop.
Analyst Justin Bennett told his 111,100 followers on social media site X that Ethereum is testing the diagonal support of the ascending channel again.
An ascending channel suggests that the asset is making higher highs and higher lows but may fall if the price falls below the lower support level.
Bennett says,
“To say this is a big moment for ETH is an understatement.
There will likely be a bounce here, but I still think we will ultimately see a much lower Ethereum value.”
Looking at the trader’s chart, one can assume that he is predicting that Ethereum will break below the channel support level and fall to its long-term trend line.
“A possible move to ETH $700 has been my base case for the last year. We’ll see.”
The move to $700 represents a more than 69% decline in ETH from current prices. At the time of writing, ETH is trading at $2,278,
The trader also notes that the looming Fed rate cut this month, which many market participants see as a catalyst for a new rally, is unlikely to lead to sustained gains.
“Markets are looking ahead. Why should they wait for a rate cut to start rallying? Any rally in risk assets after a rate cut is likely a trap.”
Generated image: Midjourney
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