A closely tracked crypto strategist is predicting an epic collapse for leading smart contract platform Ethereum (ETH) heading into 2023.
Popular crypto analyst Justin Bennett tells his 105,500 Twitter followers that he sees Ethereum plunging to a bear market bottom of around $300 as 2022 expires.
“Unpopular opinion: the ETH bottom is probably closer to $300 than $1,000. ‘That’ll never happen,’ they’ll say. It already did during the last crypto bear market. And that was without a global recession, a bear market for stocks, and inflation ripping to new highs in many developed countries.”
At time of writing, Ethereum is changing hands for $1,594. A move to Bennett’s target suggests a downside risk of about 80% for the top altcoin by market cap.
As for Bitcoin, Bennett believes BTC is likely headed to lower prices after taking out its channel support.
“This can still turn into a higher low for BTC, but the optics aren’t great. I still think we go lower.”
At time of writing, Bitcoin is swapping hands for $21,312, still below Bennett’s trendline support.
Bennett says he expects the US dollar index (DXY), which pins the US dollar against a basket of other fiat currencies, to continue rising. He notes a rising DXY does not bode well for both Bitcoin and Ethereum.
“Today’s pullback from stocks and crypto was advertised by the DXY reclaim on the 15th.
There’s always a canary in the coal mine… The trend is your friend unless it’s the DXY. 112-113 first, but most likely 120 in the next few months.
USD up means risk assets down. Stocks, crypto, BTC, ETH.”
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Featured Image: Shutterstock/Tithi Luadthong
