The final day of the week is neutral for the cryptocurrency market as certain coins are in negative territory while the prices of others are climbing, so it appears that the holiday spirit did not spread to the market.
However, with the uncertainty of the cryptocurrency market, anything can cause a price change and the crypto wires are constantly being flooded with FTX updates and regulatory noise.
Talking about the second-largest cryptocurrency, Ethereum, the price fell in the middle of December, it instantly slid sideways and broke through some important support levels.
Ethereum may be heading toward an epic collapse. Expert and analyst Nicholas Merten issued a dire warning and said that ETH Price has serious issues that might cause it to lose up to 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 used a graph to show the Ethereum DeFi protocol liquidation levels. The crypto strategist claims that if ETH drops to a specific level, these protocols will cause a big sell-off event. There might be a cascading impact on the sell-side of the Ethereum market if it starts to go towards approximately $750 to $550.
He talks about the pressure which may push the price of ETH from $750 and $550 to $300 very soon. Merten compares the scenario to Ethereum’s significant fall 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.”
(Source: coinpedia.org)
