In a recent tweet, renowned economist and cryptocurrency skeptic Peter Schiff predicted a significant drop for Ethereum, forecasting a crash to $1,500.
Schiff noted that Ethereum is also breaking through key support levels, having previously said a similar thing about Bitcoin. Currently trading below $2,900, Ethereum has already fallen 30% from its March high.
Schiff pointed out that the market appears to be reacting prematurely to the anticipated launch of an Ethereum ETF. "It looks like those buying the Ether ETF rumors couldn't wait for the fact to sell," he commented, suggesting that investors who had driven up the price based on ETF speculation are now exiting their positions, contributing to the downward pressure on Ethereum's price.
#Ethereum is also breaking key support. It's trading below $2,900, down 30% from its March high. I think a crash down to $1,500 is coming. It looks like those buying the #Ether ETF rumors couldn't wait for the fact to sell. pic.twitter.com/XXEyX67BXK
— Peter Schiff (@PeterSchiff) July 5, 2024
At the time of writing, ETH was down 9.3% in the last 24 hours to $2,872.
As Ethereum hovers precariously below $2,900, Schiff’s bearish outlook adds to the growing concerns within the crypto community. The prediction of a drop to $1,500 would represent a significant decline and may influence market sentiment further.
Crypto market losses deepen
Schiff's comments come at a time when the broader cryptocurrency market is experiencing volatility. According to CoinGlass data, more than $800 million in bullish crypto bets were liquidated in the last three days, one of the heaviest such liquidations since April.
Bitcoin fell for the fourth straight trading session, part of a larger crypto sell-off that contrasted with recent record highs in global stock markets. Ethereum experienced higher losses, reaching 10%.
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Approvals for the U.S. ETFs of Ethereum are forthcoming, but interest in the products may be mixed if the crypto sell-off continues.
Investors are awaiting U.S. jobs statistics later Friday to get the latest hint at the Fed's policy stance. Recent soft economic indicators have boosted the case for the U.S. Federal Reserve to ease monetary policy in the coming months.
Likewise, the market will be closely monitoring Ethereum's performance and the potential impact of ETF developments in the coming weeks.