Bitcoin‘s prediction of hitting rock bottom in 2022 has made investors closely follow the cryptocurrency analyst DonAlt, who suggests that Ethereum, the king of altcoins, may face a sharp decline before reaching a cycle bottom.
In the latest episode of TechnicalRoundup, cryptocurrency analyst DonAlt warned that Ethereum (ETH) could be on the verge of a major collapse against Bitcoin (ETH/BTC). According to the analyst, the ETH/BTC pair prefers to rapidly collapse rather than slowly move downwards for months. He stated:
ETH/BTC is currently accelerating downwards, just like it has been for the past few weeks, and I think that’s a good thing. It’s better than the bleeding we experienced before.
I believe the faster this trend accelerates, the closer we get to the bottom. However, if it accelerates more than it has so far, it means there will be even greater pain. From a price perspective, it’s not good for those still holding, but from a timing perspective, I love it when we see big, big candles accelerating. I would think we could be at a bottom within two weeks at most.
However, if you keep seeing these small candles continuously moving downwards, you would think it could continue for the next six months. I actually prefer it to accelerate even more because then it starts to look like capitulation.
DonAlt emphasized that Ethereum investors would consider accumulating Ethereum after capitulation and stated, “If capitulation starts and foolish price targets start being given, I guess it would be 0.047 BTC ($1,232). That’s where things start getting silly, and even if the narrative isn’t there yet, I’ll be ready for it.”
Currently, the ETH/BTC pair is trading at $1,578 and 0.06046 BTC. A drop towards the target predicted by DonAlt indicates that ETH/BTC has more than 21% downside potential.