A crypto analyst says Ethereum (ETH) will continue to decline despite the heavy market correction. Another crypto trader and analyst shares altcoin projects in his basket.
Analyst expects a drop in leading altcoin price
In a new video update, Crypto analyst Nicholas Merten tells his 512,000 YouTube subscribers that the current value of smart contract platform Ethereum is declining, according to analysis of its weekly chart. Merten notes that Ethereum continues to be overvalued and expects a sharp price drop. In this context, the analyst makes the following statement:
As I have emphasized many times before, I think Ethereum is overvalued at these levels. I love ETH on a basic level. But at the same time, these valuations relative to typical bear markets indicate that it is overvalued. Also, we need to understand that it’s probably going to play the worst now, in terms of macro-sensitivity.
Source: Nicholas MertenAccording to his chart, Merten seems to predict that Ethereum will drop to around $300 early next year. At press time, the leading altcoin was trading at $1,170, up 3.65% on a daily basis.
Merten is also watching DXY as it impacts the crypto market
Merten also looks at the US Dollar Index (DXY), a measure of the strength of the US dollar against other currencies. Because, as you follow on Kriptokoin.com, there is an inverse correlation between DXY and cryptocurrency prices. So, a strengthening DXY means a weakening crypto market. The analyst predicts that DXY will rise to the 110 to 114 range. At the time of writing, DXY is in the 107 range.
Source: Nicholas MertenThe analyst notes that he does not mean to say that the upward movement will be completely vertical after this correction. However, he predicts that there will definitely be an increase in the dollar. “This is probably one of the more interesting things,” Merten said. We’ll see if it takes a few days. “We may experience another slight pullback here in the coming days,” he says. The analyst concludes his DXY assessments as follows:
However, I think the dollar started to approach the valuable region for a long time after this decline. I’m not talking about long-term positions. However, I expect a retest of a similar kind of consolidation range, at least from September to early November, usually between 110 and 114. So, if we get a nice bearish opportunity here on the dollar, I will look for potential longs on that.
6 altcoins in Paradator’s basket
Meanwhile, crypto trader and analyst Enes Turan, who goes by the nickname Paradator on Twitter, opened his basket. Among the 6 altcoins in the analyst’s basket is Mask Network (MASK), which became popular after Elon Musk officially took over Twitter. Paradator shared the following on his Twitter account:
Web3-DeFi projects such as HOT, ROSE, MASK, REEF, SXP, JASMY on Binance will form the bone of my bag. We will continue with this portfolio until the summer months in 2023. Then I can change half of it again.
Binance’ta bulunan HOT, ROSE, MASK, REEF, SXP, JASMY gibi WEB3-DEFI projeleri çantamın kemiğini oluşturacak. 2023 ‘te yaz aylarına kadar bu portföyle devam edeceğiz. Sonrasında yarısı tekrardan değişebilir.
— Paradotor (@eness_turann) November 22, 2022
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