A popular crypto trader thinks things are going to get worse for the leading smart contract platform Ethereum (ETH) before they get better.
Pseudonymous analyst Bluntz tells his 224,700 followers on the social media platform X that ETH will likely continue its bearish price action in the coming weeks before flashing any sign of strength.
According to the trader, ETH will likely print a double-bottom reversal structure on the daily chart before ending its correction and rallying.
“Nice breakdown on ETH overnight. I’m still targeting around $1,440 or so but will be on the lookout for signs of reversal earlier.”
Bluntz also shares a chart showing that Ethereum could rally to as high as $2,500 following the reversal.
Bluntz applies the Elliott Wave theory in his analysis, an advanced technical analysis approach that attempts to predict future price action by following crowd psychology, which tends to appear in waves. According to the theory, an asset typically goes through a five-wave move prior to reversing its trend.
Looking at the trader’s chart, he appears to predict that the fifth and final wave of the correction will end at $1,440. However, Bluntz warns that his wave count will be invalidated if ETH manages to bounce to $1,622 before hitting his downside target.
“One thing I don’t want to see to maintain bearish bias is a move back into the range and above $1,622.”
ETH is trading at $1,549 at time of writing. The second-ranked crypto asset by market cap is down 4% in the past 24 hours and 5% in the past week.
While Bluntz is predicting a swift recovery for ETH once the leading altcoin hits $1,440, crypto trader Benjamin Cowen is not as optimistic.
Cowen told his 787,000 YouTube subscribers over the weekend that a massive freefall could be possible for the digital asset.
“There’s a good chance that [there will] be a lower low, and it might not be a much lower low, maybe it just goes down to just below $800. It could go lower. It could go to $600 or $500 or $400, but that is in the cards for Ethereum.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: Midjourney