Closely followed crypto analyst Justin Bennett says that Ethereum (ETH) faces further downside risk before it has any chance of breaking new all-time highs.
In a video update, Bennett tells his 100,000 Twitter followers that the crypto market have a little further to go until it finds a true bottom.
He also says that he expects Ethereum to bottom out at the diagonal support of its ascending channel.
“If you’re a bear like me, then you’re looking for a close below $2,950. I do want to clarify that over the next couple of weeks I am bearish. However, I do want to buy at my short-term target for Ethereum.
That target for this market is going to be right between $2,500 and $2,600. The reason for that is, first of all, we have these lows back here (March 2020), so that’s pretty obvious… That’s going to be support. We also have the bottom of this ascending channel that also comes in around that same area.”
At time of writing, Ethereum is exchanging hands for $2,855, below Bennett’s line in the sand.
The analyst is also watching TOTAL, which puts the market cap of all cryptocurrencies on one chart. According to Bennett, TOTAL has also breached a support level in a very clean technical fashion, suggesting that a significant correction across the crypto markets is in sight.
“It doesn’t get much cleaner than this.
TOTAL.”
Featured Image: Shutterstock/wacomka/Natalia Siiatovskaia