A top trader who nailed Bitcoin’s (BTC) bottom last year says Ethereum (ETH) may see a deep devaluation before carving out a cycle bottom.
In a new episode of the TechnicalRoundup, crypto analyst DonAlt tells his 53,300 YouTube subscribers that Ethereum may be on the verge of breaking down against Bitcoin (ETH/BTC).
According to the analyst, he prefers to see the ETH/BTC pair going through a massive sell-off event rather than moving down slowly for months.
“In general, ETH/BTC is accelerating [to the downside] now – like it has been in the last few weeks – which I think is good. It’s better than the bleedout that we had before.
The more this accelerates, the closer we are to the bottom, I think. But then obviously if this accelerates more than what it has done already, the major pain is still to come. For the people still holding it, that’s obviously not great price-wise. But time-wise, I like it better when it accelerates as in you see big, big candles… I would be like we might be two weeks out from a bottom at most.
Whereas if you see these small candles that just continuously walk down, you’re like this could keep on going for the next six months.
I would prefer this to actually accelerate even more because then it starts looking capitulatory.”
DonAlt says that he’s looking to accumulate Ethereum once ETH holders capitulate.
“If this starts capitulating and starts putting in dumb prices, like when you look at the chart and people are actually being dumb right now and then I’m down. I think that would be 0.047 BTC ($1,232) – something like that. That’s where it starts getting dumb and that’s where I’d be ready even if the narrative isn’t there.”
At time of writing, ETH/BTC is trading for 0.06022 BTC worth $1,578. A correction toward DonAlt’s price target suggests a downside potential of over 21% for ETH/BTC.