The closely watched crypto strategist is predicting a massive drop for the leading smart contract platform Ethereum (ETH) in 2023.
Prominent analyst Justin Bennett told his 105,500 Twitter followers that he sees Ethereum dropping to a bear market bottom at around $300 when 2022 ends.
“Unpopular opinion: ETH bottom is probably closer to $300 than $1,000. “That will never happen,” many will say. It happened during the last bear market. Global recession, stock bear market, and inflation surge to new highs in many developed countries.
At the time of writing, Ethereum is trading at $1,539. A drop to Bennett’s target represents around 80% downside risk for the top altcoin by market cap.
As for Bitcoin, Bennett believes that BTC is likely to plummet after breaking the channel support.
“The downtrend resumed after the price broke below the channel. I still believe BTC will drop to new lows.”
At the time of writing, Bitcoin is changing hands at $20,912, down 12% over the past seven days.
Bennett said he expects the US dollar index (DXY), an index that values the US dollar against a basket of other currencies, to continue to rise. He noted that a rising DXY does not bode well for both Bitcoin and Ethereum.
“The correction in stocks and cryptocurrencies today was hinted at by the breakout of DXY on the 15th.
The trend is you. 112-113 is the first target for DXY, but most likely 120 in the next few months.
An increase in USD means a decrease in risk assets. Stocks, Cryptocurrencies, BTC, ETH Fall.”