Cryptocurrency analyst and trader Jason Pizzino has issued a cautionary warning regarding the potential decline in value of Ethereum (ETH). Pizzino, who has a following of 349,000 subscribers on YouTube, believes that ETH could see a significant drop of more than 47% from its current value. This prediction is based on the formation of a bearish double-top pattern on the weekly chart of the second-largest cryptocurrency.
A double-top pattern is a technical indicator that is often viewed as bearish by analysts. It suggests that the buyers are losing momentum and may not have the strength to push the price of the asset higher. Pizzino expressed his concerns in a recent video, stating, “It’s really looking very, very weak here and like it wants to continue to fill in the gap of this price range, somewhere between $1,600-$1,700 and basically where it is now, around $2,100.”
According to Pizzino, if the price of ETH breaks below its current support levels, it could potentially drop to the range of $1,500 to $1,600. He also highlighted additional price targets of $1,300 and $1,200, which represent a 150% decrease from the double-top pattern. Pizzino emphasized that similar patterns have occurred in various assets, including Bitcoin and stocks, leading to significant price declines.
At the time of writing, Ethereum is trading at $2,231, showing a 2.4% increase in the last 24 hours. Despite the recent gains, Pizzino’s analysis suggests that the cryptocurrency may be vulnerable to a substantial correction in the near future.
As investors and traders monitor the market for potential price movements, it is essential to stay informed and consider various perspectives. Whether ETH will indeed experience a significant decline remains to be seen, but Pizzino’s insights provide valuable insights for those navigating the volatile cryptocurrency market. Stay tuned for updates on Ethereum’s price action and make informed decisions based on thorough analysis and research.