A crypto strategist has issued a serious warning for Ethereum, predicting a significant price drop for ETH.
Analyst Justin Bennett informed his 111,100 followers on social media platform X that Ethereum is once again testing the diagonal support within its rising channel pattern.
What is a Rising Channel Pattern?
A rising channel pattern indicates that an asset is forming higher highs and higher lows, but this pattern can break if the price falls below the lower support.
“To say this moment is crucial for ETH would be a huge understatement. We will likely see a bounce here, but I think we will eventually see much lower levels for Ethereum.”
Possible Drop for Ethereum
According to Bennett's chart, he predicts that Ethereum will fall below the channel's support and retreat to the long-term trend line.
“My base case last year was for ETH to drop to $700. We will see.”
A drop to $700 would mean a decrease of over 69% from ETH's current prices. At the time of writing, ETH was trading at $2,278.
Impact of Interest Rates
Bennett also noted that although the Fed rate cut expected this month is seen by many market participants as a catalyst for new rallies, it will not lead to sustainable rises.
“Markets look forward. Why wait for rate cuts for rallies? Any rally from risk assets after rate cuts is likely a trap.”
The crypto strategist emphasizes that investors should carefully evaluate current market conditions. According to Bennett's analysis, while short-term gains may be seen, the likelihood of long-term declines is high.
However, uncertainties about Ethereum's future performance persist. Market dynamics and global economic indicators may be decisive for ETH's price movements.
Such analyses can help investors better manage risks, but it is important for every investor to conduct their own research.
