Popular crypto analyst Nicholas Merten says that Ethereum (ETH) remains overvalued and he expects a steep price decline.
In a new video update, Merten tells his 512,000 YouTube subscribers that the current value of the smart contract platform Ethereum is heading downward according to the analysis of its weekly chart.
“As we’ve emphasized many times before, we think Ethereum is way overvalued at these levels. I love ETH on a fundamental level, but at the same time, at these valuations according to typical bear markets, this is way overvalued, and we need to understand that it’s likely that the worst is going to play out according to the macro sentiment right now.”
Looking at his chart, Merten appears to forecast Ethereum dropping to a low of around $300 early next year. At time of writing, Ethereum is trading hands at $1,135.
Merten also looks at the US Dollar Index (DXY), a measure of the US dollar’s strength against other currencies. A strengthening DXY tends to mean a weakening crypto market. Merten is forecasting the DXY will increase to the 110 to 114 range. At time of writing, the DXY is at the 107 range.
“While I don’t want to say it’s going to go absolutely vertical up here after this correction, I definitely think we’re going to see a bump up here on the dollar. That’s probably one of the more interesting things. We’ll see if it takes a couple of days. We might have another slight pullback here over the next coming days. But I think the dollar is starting to get close to valuable territory for some longs after this dip.
I’m not saying long-term positions, but at least a retest backup towards this similar kind of consolidation range from here in September up towards early November, generally between 110 and 114. So if we get a nice dip opportunity here on the dollar, I’m going to be looking for some potential longs on that.”
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Source: https://dailyhodl.com/2022/11/23/ethereum-eth-still-has-further-to-drop-despite-heavy-market-correction-says-top-crypto-analyst/