A crypto strategist is issuing a dire warning for Ethereum, believing that ETH is on the cusp of witnessing massive downward price action.
Analyst Justin Bennett tells his 111,100 followers on the social media platform X that Ethereum is once again testing the diagonal support of an ascending channel pattern.
[adinserter block="1"]An ascending channel suggests that an asset is printing higher highs and higher lows but could break down if price falls through the lower support.
Says Bennett,
“To say this is an important moment for ETH is a massive understatement.
Probably a bounce here, but I still think we eventually see much lower for Ethereum.”
Looking at the trader’s chart, he seems to predict that Ethereum will move below the channel’s support and drop all the way down to its long-term trendline.
“An eventual move to ETH $700 has been my base case for the last year. We’ll see.”
A move to $700 indicates an over 69% decrease for ETH from current prices. At time of writing, ETH is trading for $2,278,
The trader also notes that a looming Fed rate cut this month, which many market participants see as a catalyst for new rallies, will likely not translate to sustainable surges.
“Markets are forward-looking. Why would they wait for rate cuts to rally? Any rally from risk assets following rate cuts is likely a trap.”
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