A prominent expert warns that the value of Ethereum (ETH) and several other cryptocurrencies will fall dramatically.
In a new YouTube strategy session, Nicholas Merten, a cryptocurrency analyst, informs his 512,000 followers that Ethereum is in a downturn, with the 200-week moving average continuing to function as a barrier.
“Even though based on the ETH/BTC ratio, Ethereum has remained largely stable since May of 2021 versus Bitcoin, it is still on a downward trajectory… We think that this chart will shortly begin to decline.
Ethereum is trading well below both its 200-day and 200-week moving averages. Since the fall of FTX in November 2022, we have been monitoring this range. Since then, the 200-week moving average has begun to act as resistance, the same pattern we saw in June.”
He warns that a relief rally cannot be sustained until Ethereum rises above its 200-week moving average and trades between 15% and 30% of its present value, between $1,470 and $1,600. At the time of writing, the price of Ethereum is $1,253.
“I’d want to make the argument here and now that any kind of relief rally or advance we make into that range is not to be taken lightly. I believe it will function as resistance, especially given the 200-days are so near to that range. Until we can go above that range, which would be extremely fascinating to me, and make these indicators support, I stay negative.”
Merten cautions that other alternative cryptocurrencies may collapse under the present market circumstances because they are overpriced.