dailyhodl.com
A closely followed crypto analyst is issuing a warning to investors saying that smart contract platform Ethereum (ETH) could plummet by up to 26%.
Pseudonymous crypto strategist Credible Crypto tells his 402,300 followers on the social media platform X that the top altcoin has likely not yet found a market bottom.
The analyst looks at ETH’s open interest (OI) – which tracks the total number of outstanding derivatives contracts for a given asset – and believes it remains overweight despite Thursday’s price collapse.
“When we look at OI in coin terms (below) we can see that the big flush on positioning hasn’t actually happened yet. OI has just dropped in money terms because price has dropped.
The real flush in positioning likely happens a bit lower. My bet would be a bottom somewhere between $2,200-$2,700. Watch for that flush on OI (in coin terms) as we push into this zone.”
Ethereum is trading for $3,002 at time of writing, down more than 4% in the last 24 hours.
The analyst also warns that memecoin Pepe (PEPE) could plummet in price.
“PEPE looks to have completed its deviation at the range highs and has found acceptance back inside the range. Now [it’s] targeting the range lows and realistically below that… Some alts are getting hit harder than others.
Alts like PEPE that have a lot of open air below have minimum downside targets of 30%-40% lower (range lows on PEPE) with potential for 60%-70% lower before their larger corrections are over (breakdown from range lows for PEPE). For other alts that have already been beaten to a pulp, 30%-40% may be max drawdown (even less in some cases).”
Looking at his chart, the trader suggests Pepe could dip below $0.00000400.
Pepe is trading for $0.000008656 at time of writing, down 7.5% in the last 24 hours.
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