Analyst Nicholas Merten allows the possibility of a 75% decline in the ETH rate
The expert believes that the ecosystem is threatened by $1,5 billion worth of liquidations
26.12.2022 - 11:45
318
2 min
0
The material is not an investment recommendation and is published for information purposes only.
A popular analyst is issuing a dire warning to Ethereum (ETH) holders, saying that an epic collapse could be coming for the second-largest crypto by market cap.
In a new video, crypto strategist Nicholas Merten tells his 511,000 YouTube subscribers that Ethereum has major skeletons in the closet that could see ETH lose as much as 75% of its value from its current price of $1,220.
“Our target range for Ethereum is somewhere around $300 to $500. I don’t think it’s going to live there for long, but it has to do with the fact that right now, there is a big skeleton closet that is over $1.5 billion of cumulative liquidations that can potentially happen in the DeFi [decentralized finance] ecosystem for Ethereum.”
Merten shares a chart illustrating the liquidation levels of DeFvent if ETH plunges to a certain level.
“If we start to get towards around $750 to $550, you’re going to start getting a cascading effect of sell-side pressure in the Ethereum market… If you want to look at it in terms of ETH, we’re talking about a million plus ETH that is at risk of leading us down and causing that additional sell-side pressure to quickly get from $750 and $550 for ETH’s price down to $300.”
According to Merten, a nosedive to $300 for ETH is comparable to Ethereum’s massive correction during the 2018 crypto bear market.
“If we repeat history, just simply repeat history not even considering the macro environment, that takes us down to $300.”
This material is taken from the website dailyhodl.com.
Useful material?
Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024