Crypto: Could Ether Drop to $2000?
As the specter of a U.S. recession looms, ether (ETH), one of the main crypto assets on the market, is under considerable pressure. Peter Schiff, a renowned economist and financial commentator, shares grim analyses on the altcoin in a precarious economic context.
A 30% Decline Predicted for the Crypto Asset
Peter Schiff recently announced that ether could drop by 30% from its current level. This prediction is tied to significant outflows from Ether ETFs. Since their launch two weeks ago, these ETFs have recorded significant outflows, with a drop of more than 15%. According to Farside Investors, these funds recorded net outflows of $54.3 million last Friday.
Grayscale’s ETH suffered outflows of $61.4 million, while Fidelity FETH recorded inflows of $6 million. The other spot Ether ETFs recorded no inflows on that day. Schiff pointed out that these poor performances are a worrying sign, potentially causing the price of ETH to fall to $2000.
The crypto asset’s drop below the $3000 mark, for the first time since early July, has already exacerbated market anxiety. Within one week, ETH’s price dropped by more than 8.5%, with analysts anticipating deeper declines.
Major Corrections for Altcoins
Meanwhile, the entire altcoin space is undergoing significant corrections, with value drops of 5 to 10% for the major cryptocurrencies. Despite strategic purchases by ALT whales during recent declines, trading volumes remain low.
Kate Young Ju, an analyst at CryptoQuant, notes that while the formation of buy walls for altcoins is a positive sign, the trading volume needed for a robust altcoin season has not yet been reached. “It’s the perfect time to research and prepare to invest in promising altcoins ahead of the next bull run,” she advises.
Schiff’s analysis, combined with the current volatile crypto market situation, suggests a period of caution for investors. With uncertain forecasts for ether and a potentially delayed altcoin season, investment strategies might require careful reevaluation.
