A prominent figure in the cryptocurrency analysis sphere is cautioning investors that Ethereum (ETH), the leading smart contract platform, may experience a significant drop in value, potentially decreasing by as much as 26%.

The anonymous market expert known as Credible Crypto has shared with his substantial following of 402,300 on the social media outlet X that Ethereum might not have reached its market low point yet.

Focusing on Ethereum’s open interest (OI) – a metric that measures the total active derivative contracts for an asset – the strategist suggests that despite the recent downturn in price, the OI is still disproportionately high.

“Examining OI in terms of coins (see below), it’s evident that the major shakeout in positions hasn’t occurred yet. The OI has diminished in monetary terms simply because the price has fallen. The actual clearing of positions is likely to occur at a lower level. I’m predicting a bottom in the range of $2,200-$2,700. Keep an eye out for that OI purge (in coin terms) as we approach this area.”


Credit: Credible Crypto/X

At the moment of writing, Ethereum’s trading price stands at $3,002, reflecting a decline of over 4% in the past day.

Additionally, the analyst alerts that the meme-based cryptocurrency Pepe (PEPE) might see a significant price drop.

“PEPE appears to have finished its outlier movement at the upper end of its range and has re-entered the range. It’s now heading towards the lower end of the range, and realistically, even lower… Certain altcoins are facing steeper declines than others.

For altcoins like PEPE, which have a considerable gap beneath them, the minimum downside targets are 30%-40% lower (the bottom of PEPE’s range), with the possibility of a 60%-70% decrease before the completion of their broader corrections (a fall from the bottom of PEPE’s range). As for other altcoins that have already been heavily sold off, a 30%-40% drop might be the maximum extent of their decline (or even less in some instances).”


Credit: Credible Crypto/X

Based on his analysis, the trader indicates that Pepe could fall below the $0.00000400 mark.

Currently, Pepe is valued at $0.000008656, having decreased by 7.5% in the last 24 hours.

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