Crypto analyst Nicholas Merten gave important caveats about the market’s largest altcoin project. He said it could lose more than 70% of its value from its current price.
Nicholas Merten expects crash in DeFi altcoin market
The crypto analyst laid out a scenario in his latest Youtube post where Ethereum would lose 75% of its current price. Merten says that Ethereum, which is currently trying to hold on to the $ 1,200 region, will shrink to triple-digit prices. In the “Imminent Ethereum Crash” header new image, he details the reasons for his expectations as follows:
Our aim range for Ethereum is in the middle of $300 to $500. I don’t think it will last long there, but it has to do with the fact that there is a huge bombshell in DeFi with over $1.5 billion in cumulative liquidations that could potentially happen.
Merten details his analysis with a graph showing the purge levels of Ethereum-based DeFi protocols. According to his claims, these protocols will trigger a big sell event if Ethereum continues to drop. In their own words:
If we really start to move around $750 to $550, you will start to see the cascading effect of sell-side pressure in the Ethereum market… If you want to look at it from an ETH perspective, here is a million plus ETH, pulling us down and additional sell-side pressure is 750 and 550 for the price of ETH. risks causing it to drop rapidly from $300 to $300.
Retail investors are skeptical about the future of Ethereum
Although whales show interest in Ethereum, individual investors’ interest in Ethereum is waning. In addition, the percentage of longs held by top investors in the last few days has dropped from 65.25% to 56.67%, according to Coinglass’s information.
One of the reasons for this could be declining activity on the Ethereum network. According to data provided by Santiment, daily active addresses on the Ethereum network have dropped from 1.42 million to 408.8 thousand in the last two weeks. Also, Ethereum’s face fell significantly in the past month. In his scenario, supported by all this information, Merten says that we may see movements similar to the 2028 bear market when the ETH price drops to $ 300:
If we repeat history, just repeat history without taking into account the macro environment, which would get us down to $300.
In the middle, concerns about the centralization of the Ethereum network are back on the agenda with new tweets from Willy Woo. Woo says that the Ethereum network is under US control.
Ethereum is currently trading around $1,220. Its price was fixed in the last 24 hours. It stays green around 2.6% compared to last week. Meanwhile, the price of Bitcoin was also spending time under $ 17,000.