Ethereum: Warning ETH can be considered a stock, analysis of price and total market cap
A prominent crypto trader and analyst is warning his followers that Ethereum (ETH) could drop by nearly 45% if the current support is broken.
Cryptocademy founder Justin Bennett told his 108,500 Twitter followers that ETH is testing a "neckline" in a possible head and shoulders trend.
“ETH is testing the neckline.
Target is $800 if this breaks."
With ETH currently trading at $1142, a drop to $800 would represent a 44% drop.
Bennett also looked at total cryptocurrency market capitalization (TOTAL), an indicator of crypto market strength. Bennett warns that TOTAL may be finding resistance to the upside, while equities are creating trouble for digital assets.
“TOTAL seems to be finding resistance at the 2015 trendline I mentioned, and the stocks are looking terrible.
Be careful out there.
At the time of writing, TOTAL is down just 0.7% over the past 24 hours.
Speaking of stocks, Bennett then looked at the S&P 500 and saw only bad news.
"Lights out. Repack.
The S&P 500 just lost support at 3,910.
Let's see how long it takes for crypto to catch up. "
Finally, Bennett rates the US dollar index (DXY), an indicator of the relative strength of the dollar. Bennett sees a steady increase in DXY from where it is now, which will spell trouble for the crypto market.
Sep 17, 2022