A popular crypto analyst says Ethereum (ETH) could undergo a massive correction once it dips below a key psychological level.
Pseudonymous analyst Capo tells his 336,100 Twitter followers the price of Ethereum could plummet significantly once the $1,700 support is breached.
“When ETH breaks $1,700, the real capitulation starts.”
Ethereum is trading for $1,811 at time of writing.
Capo says that once Ethereum’s $1,700 support level crumbles, the second-largest crypto asset by market cap could fall by over 40% from the current level to hit a price of $1,000.
“ETH low timeframe
Lower highs all the time and that support has been touched a lot of times already.
Clean break of $1,700 and last leg down would be confirmed, with main target = $1,000.”
Last week, the analyst noted Ethereum’s support level of around $1,700 has withstood pressure five times.
“Serious question: do you really think this level is going to hold on ETH? It’s the sixth touch already.”
Besides Ethereum, Capo says he also expects Bitcoin (BTC) to go lower. According to Capo, Bitcoin is currently in a redistribution range and once it breaks below the low of the range, it could fall by as much as 30% from current levels.
In a redistribution trading range, if the price fails to break above the high of the range, it forces prices to succumb to the selling pressure of market participants eyeing lower prices.
Clean range. What is happening inside the range and what has happened at the range high, shows that this is clear redistribution range.
Clean break of the range low = last leg down confirmed = $21,000 – $23,000.”
Bitcoin is trading for $30,482 at time of writing.
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