Only one thing seems certain in the cryptocurrency market right now: volatility, or strong price moves. After yesterday’s crash, Ethereum (ETH) is heading in the opposite direction today: the smart contract platform is up nearly 8%, even outperforming Bitcoin (BTC). However, the forecast is grim and the crash is expected to set the ETH process back by years. The collapse of the FTX still has a stranglehold on the industry. So what does Ethereum expect?
Should you invest in Ethereum?
The exit from the cryptocurrency exchange FTX is still weighing heavily on the cryptocurrency industry. As a result, forecasts for almost all tokens have become increasingly pessimistic. Bitcoin is heading for $10,000 and could fall below it. Ethereum, on the other hand, has just hung above $1,000 and is also primed for new downside.
Despite the strong price performance over the past 24 hours, bulls pushed ETH from yesterday’s low of $1,081 to as low as $1,166, up nearly 8% on the day. In contrast, bitcoin is up 5.1% since yesterday.
The corresponding upward movement, though, has given many investors hope that a correction from here is less persistent than a new one
Playing is more likely. Many traders and industry watchers are warning that Ethereum will fall to new lows. Token lows not seen in years.
For example, the oft-cited chart expert CryptoCapo warns that all these price increases are so-called bull traps. In other words: the process looks bullish, but only temporarily. Shortly thereafter, collapse threatened.
His Ethereum prediction: ETH falls back to the low $600 level before the trend reversal begins. That would take Ethereum prices to 2020 levels. The analyst also expects bitcoin to trend lower, with a price target of $12,000:
Capo is not alone in his gloomy predictions. Top analyst Justin Bennett also expects new pain points on Ethereum. He saw ETH fall even lower, writing to his more than 111,000 Twitter followers: The bottom of Ethereum is between $300 and $400 – that’s what the data suggests.
“ETH macro bottom is $300- $400 IMO.”
So investors should proceed with caution — and prepare for a new and sustained downtrend in Ethereum.
Stay together. If you have a question, let me know in the comments
