A Top Trader Predicts a Deep Devaluation for Ethereum
A prominent trader, known for correctly predicting Bitcoin’s bottom in 2022, has warned that Ethereum may experience a significant devaluation before reaching its cycle bottom. The trader, DonAlt, shares his analysis with his 53,300 YouTube subscribers, stating that Ethereum is potentially on the verge of a breakdown against Bitcoin.
Accelerating Downside Momentum
DonAlt believes it is better for the ETH/BTC pair to experience a massive sell-off event rather than a slow decline over several months. He explains that the acceleration of downside momentum indicates that the bottom may be closer. However, if this acceleration continues at an even faster pace, it could bring major pain for those still holding Ethereum.
The Preferred Scenario
The trader prefers to see the downtrend accelerate even more because it would suggest a capitulatory phase. This would involve large downward price movements and could potentially indicate that the bottom is only two weeks away. In contrast, a slow and steady decline could extend for another six months.
Accumulating Ethereum at Capitulation
DonAlt plans to accumulate Ethereum once holders start capitulating and prices become irrational. He identifies a price level of 0.047 BTC ($1,232) as an attractive entry point, regardless of the prevailing narrative.
Potential Downside Target
Currently, ETH/BTC is trading at 0.06022 BTC ($1,578). If the price corrects towards DonAlt’s target of 0.047 BTC ($1,232), it suggests a potential downside of over 21% for the pair.
Hot Take: Brace Yourself for Ethereum’s Potential Deep Devaluation
According to a top trader, Ethereum may experience a significant devaluation before reaching its cycle bottom against Bitcoin. The trader prefers to see an accelerated sell-off rather than a slow decline, as it could indicate that the bottom is closer. However, if the downtrend accelerates further, it could bring major pain for Ethereum holders. The trader plans to accumulate Ethereum once prices become irrational and identifies a price level of 0.047 BTC ($1,232) as an attractive entry point. Currently trading at 0.06022 BTC ($1,578), the potential downside for ETH/BTC is over 21% based on the trader’s target.
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