Ethereum predicted a record drop of 69%

A crypto strategist has issued a warning to Ethereum holders, believing that ETH is on the verge of a massive price decline. Analyst Justin Bennett told his 111,100 followers on the social media platform X that ETH $3,304.35 Bridged Ether (StarkGate) -1.54% Market capitalization $0.28 billion VOL. 24 hours $2.58 billion is testing diagonal rising channel support again.

An ascending channel implies that an asset is showing higher highs and lows, but could collapse if the price falls through lower support. Bennett said: «To say that this is an important moment for ETH is a huge understatement. There may be a rebound here, but I still think we’re going to see a much lower price for Ethereum in the end.»

The trader predicts that ethereum will fall below the channel support and will fall all the way to its long-term trend line. «The final move to $ 700 has been my base case scenario for the past year. A move to $ 700 would represent a drop of more than 69% from current prices.»

Justin Bennett also notes that the Fed’s rate cut this month, which many market participants consider a catalyst for new rallies, is not likely to lead to sustainable growth. «Markets are focused on the future. Why should they wait for a rate cut to start growing? Any rally from risky assets after a rate cut is likely to be a trap.»