A widely followed crypto analyst believes that a monumental collapse is in the cards for the smart contract platform Ethereum (ETH).
In a new video, analyst Nicholas Merten tells his 512,000 YouTube subscribers that Ethereum had more than a year to break out from an ascending triangle pattern.
According to Merten, Ethereum’s inability to convincingly move above the resistance of the bullish formation suggests that ETH is weak and likely headed to much lower levels.
“Ethereum cannot show up to the plate. It keeps getting shot down [at around] $2,000, and that’s okay for a while. But eventually, you’ve got to be able to either break out to the upside or if you break through the ascending line of support to the downside, that spells bad news. That is a failed technical pattern…
So if we are not going to catch a bid here, then that means we’re probably going to revisit $1,100 – the previous support range – or come down to $890 like we were back here in June.
Or maybe even worse: perhaps our scenario of anywhere from $300 to $500 Ethereum is not too bearish at all. Perhaps is not too far off.”
At time of writing, Ethereum is trading for $1,597, slightly below the diagonal support of Merten’s ascending triangle pattern.
Merten is not the only analyst sounding the alarm about a possible Ethereum crash. Crypto strategist Benjamin Cowen previously said that it is in the realm of possibility for ETH to nosedive to as low as $400.
“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.”
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