A well-known cryptocurrency analyst and trader, who goes by the pseudonym Capo, is predicting a significant drop in the price of Ethereum (ETH) to levels not seen since late 2023. With a following of over 104,000 subscribers on Telegram, Capo believes that Ethereum could experience a decline of more than 26% from its current trading level.
Capo notes that Ethereum has been trading within a range of $2,000 to $2,800 for the past two months, which he sees as an accumulation phase. However, he suggests that there may be one final shakeout before a potential expansion, bringing the price down to the range of $1,800 to $2,000. This drop is considered the “spring phase” of the accumulation schematic.
As of the time of writing, Ethereum is priced at $2,430. Capo warns that if Ethereum experiences a significant collapse, it could trigger a sharp decline in altcoins as well. However, he sees this as an opportunity for a proper altcoin season to kick off in the future.
Capo also shares his thoughts on Bitcoin (BTC), indicating that the recent recovery of BTC above $60,000 could be a “dead cat bounce.” This term refers to a temporary increase in price following a downtrend, which is then followed by another decline. Capo predicts a local top formation for Bitcoin in the near future, with a bearish continuation expected in the coming week.
Bitcoin is currently trading at $62,275. Capo’s insights suggest that the cryptocurrency market may experience further volatility in the days ahead, presenting both risks and opportunities for investors.
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As always, it’s important to conduct thorough research and exercise caution when trading or investing in digital assets. The cryptocurrency market is known for its high volatility, and prices can fluctuate rapidly. Stay informed, stay vigilant, and make well-informed decisions to navigate the ever-changing landscape of cryptocurrencies.