A closely followed crypto strategist is warning that Ethereum (ETH) could follow a similar 2022 pattern and soon plummet in value.
Justin Bennett tells his 112,400 Twitter followers that the leading smart contract platform could collapse in value by more than 78% from its current price of $1,862.
The analyst says that ETH may be consolidating in a long upward channel and could soon revisit the bottom of it. Such a drop would put ETH at about $400, according to Bennett’s chart.
“Imagine if the last 10 months have been nothing more than mid-trend consolidation for ETH. Few believed this scenario last year, and fewer believe it now. Not saying it will happen, but don’t rule it out.”
Bennett’s analysis is an update on a previous call from last year when he first suggested a drop to between $300 and $400 for ETH.
The analyst also updates his outlook on Bitcoin (BTC), and says the king crypto’s latest rally has run out of gas. He says a drop off in trading volume suggests that it’s unlikely Bitcoin will continue its upward trajectory in the near term to hit $50,000, as some predict.
“I’d love to know how so many believe Bitcoin will reach $100,000 or even $50,000 this year when volume looks like this. A rally on decreasing volume = exhaustion.”
Bitcoin is trading for $28,542 at time of writing, up 1.3% in the past 24 hours.
The trader notes that the US Dollar Index (DXY) has, for the first time since March, closed the day at a higher value than the previous day, indicating USD is strengthening. The DXY pits the US dollar against a basket of other major foreign currencies, and is often inversely correlated with risk assets like crypto.
“DXY, first higher high since early March.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Jorm S