A cryptocurrency analyst and trader says Ethereum (ETH) is on the verge of falling to levels last recorded in late 2023.
The analyst, pseudonymously known as Capo tells According to its 104,092 Telegram subscribers, Ethereum could fall by more than 26% from current levels.
“Ethereum has been fluctuating between $2,000 and $2,800 for two months. It appears to be an accumulation range. However, as has been mentioned in recent days, it is likely that we will see one last shakeout before an expansion, towards $1,800 – $2,000 (the spring phase of the accumulation schedule).
Ethereum is trading at $2,430 at the time of writing.
According to the pseudonymous analyst, an Ethereum collapse could cause altcoins to plummet, increasing the likelihood that a real altcoin season will kick off.
“If that potential shakeout happens, altcoins should dump 20% – 40%, a ‘capitulation candle’ similar to the Covid crash. If that happens, don’t be afraid. It would probably be one of the best buying opportunities in months.”
As for Bitcoin (BTC), Capo says the key crypto asset’s recovery above $60,000 earlier this week after falling below $59,000 appears to be a “dead cat bounce.” A dead cat bounce is a rise in the price of an asset after a downtrend, which gives a false sense of a rally, but is then followed by another price drop.
Says Kapo,
“First move done.
Now we should see a local top formation here and a bearish continuation this week.”
Bitcoin is trading at $62,275 at the time of writing.
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Featured image: Shutterstock/liorigo
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