Experienced cryptocurrency analyst Nicholas Merten warned of a major collapse for the largest smart contract platform Ethereum (ETH). The analyst believes that the altcoin king is facing a significant risk of collapse.
Experienced cryptocurrency analyst Nicholas Merten pointed out that Ethereum has had over a year to break out of its ascending triangle formation. According to Merten, the fact that Ethereum has not convincingly surpassed the resistance of the ascending formation indicates that ETH is weak and likely heading towards much lower levels:
Ethereum just can’t seem to gain momentum. It continues to move below $2,000, and while this may not be a problem for a while, eventually there must be an upward breakout or a downward break of the ascending support line, signaling the worst scenario.
If there is no buying pressure here, it will likely revisit the previous support range of $1,100 or even drop to $890, just like it did in June. Maybe it will get worse and move towards a target between $300 and $500.
The altcoin king ETH is currently trading at $1,597, slightly below Merten’s ascending triangle formation and the rising support trend line at the time of writing this article.
Merten is not the only analyst sounding the alarm about a potential Ethereum collapse. Well-known cryptocurrency analyst and strategist Benjamin Cowen also issued a similar warning, stating that a drop of up to $400 is possible:
There is a high possibility of forming a lower low, and this may not be the lowest low. The price could possibly drop just below $800. Furthermore, the price could drop even further. It could drop to $600, $500, or even $400.