Analyst Nicholas Marten believes that Ethereum could collapse by 75% due to the secrets of its developers

Cryptocurrency analyst Nicholas Marten said that the Ethereum network has problems that could cause ETH to lose up to 75% of its value. The reason for the possible collapse of Ethereum is the secrets that the team of the main altcoin hides from users.

According to the expert, the future price range for ETH $2,904.13 Bridged Ether (StarkGate) 3.27% Market capitalization $0.24 billion VOL. 24 hours $1.67 billion ranges from $ 300 to $ 500. At the same time, Martin noted that even such quotes will not last long. According to him, the possible collapse of ETH is due to the fact that «right now, developers are hiding a big skeleton in the closet, which is more than $ 1.5 billion in liquidations that could potentially occur in the decentralized finance ecosystem for Ethereum.»

Nicholas Marten is convinced that liquidations in DeFi protocols on Ethereum will trigger a massive sell-off if the ETH price drops to a certain level. For instance, if the token moves from $ 750 to $ 550, a cascading effect of pressure from sellers will begin, the expert believes.

According to Marten, the drop in ETH price to $ 300 can be compared to the large-scale correction of altcoin during the 2018 bear market. If such a scenario is repeated, even without taking into account the macro environment, it will cause the ethereum to fall to $ 300, the analyst concluded.

Nicholas Marten is also negative about the future of bitcoin — back in October, the expert expressed the opinion that BTC $75,878.88 Bitcoin 1.02% Market capitalization $1.5 trillion VOL. 24 hours $3.14 billion will fall to new market lows if the US Federal Reserve does not stop raising the prime rate. According to Mr. Marten, the US regulator will continue to raise rates until it achieves its inflation control goals. Marten emphasized that the Fed’s actions are strategically correct for the country’s economy, but they have a detrimental effect on the cryptocurrency market.