A popular crypto analyst is forecasting Ethereum’s (ETH) potential price trajectory once the platform officially switches to a proof-of-stake consensus model.
In a new market report to his 275,000 YouTube subscribers, Jason Pizzino says the price of ETH may hit a brick wall in the short and mid-term after the so-called “merge” happens, which is currently expected to occur in about a week.
[adinserter block="1"]Pizzino says he’s concerned that ETH will form a lower high as the merge takes place, paving the way for painful price action for Ethereum investors.
“Looking at the US dollar on Ethereum, we just closed back above the 50 [fibonacci] level. So basically the facts on what we’re seeing here in terms of price – above the 50 the resistance level is still at about $1,700 based on the previous support levels of the bull market cycle.”
If ETH does meet resistance at $1,700 and retrace, Pizzino believes bulls will be in trouble.
“The warning is forming a lower top than the previous top that is going to spell a little bit of disaster I think – at least in that short term, medium term [which is] weeks to months based on technicals.
If you get a lower top into some of this big bullish news, even just price patterns themselves tend to spell further downside from that point.”
At time of writing, ETH is swapping hands for $1,648, up nearly 5% in the past 24 hours.
As for Bitcoin (BTC), Pizzino says that Bitcoin could have a rough month if it loses a key support area. According to Pizzino, If BTC closes below $19,500 on the daily chart, the analyst says the next area of support to watch is at around $18,700.
At time of writing, BTC is changing hands for $19,731, flat on the day.
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