Ethereum and Altcoin Market Facing Potential Major Decline Amid 2019-Like Scenario: Expert Analysis
Analyst Benjamin Cowen has issued a cautionary note regarding the potential for further corrections in altcoins, drawing parallels to historical trends. In a recent video shared with his substantial YouTube following of 804,000 subscribers, Cowen highlighted the TOTAL3 chart’s resemblance to a pattern observed in 2019. This chart monitors the collective market capitalization of all cryptocurrencies except Bitcoin (BTC), Ethereum (ETH), and stablecoins.
Comparing the current scenario to 2019, Cowen pointed out a similar sequence where altcoins experienced a low, followed by a high, before retracing back to the initial low level. He suggested that there is a likelihood of a comparable event occurring with the altcoin market, potentially retracing to the $440 billion to $450 billion range. The purpose would be to assess whether the Federal Reserve has facilitated a soft landing or if a hard landing is in progress.
At the time of reporting, the Total3 market cap stands at $520 billion. Cowen also raised concerns about Ethereum (ETH), noting a formation of a bearish pattern akin to the one witnessed in 2019, which subsequently led to a broader decline in the altcoin market. He speculated that ETH might exhibit a pattern where it fluctuates before gradually descending towards the trend line at approximately $1,980. Drawing parallels to the previous cycle, Cowen highlighted a similar trend where ETH/USD re-entered a wedge pattern following a breakdown in ETH/Bitcoin dynamics.
The current trading value of Ethereum is $2,508, reflecting a decline of over 11% within the last 24 hours. Cowen’s insights underscore a cautious outlook on the altcoin market’s trajectory, particularly with Ethereum displaying patterns reminiscent of previous market downturns. The analysis suggests a potential period of consolidation and reevaluation within the altcoin space, emphasizing the importance of monitoring market dynamics closely for potential shifts.
As the crypto market continues to evolve, Cowen’s observations serve as a reminder of the market’s cyclical nature and the significance of historical patterns in shaping future trends. Investors and enthusiasts alike are advised to exercise vigilance and stay informed about market developments to navigate potential volatility effectively. By remaining attuned to these insights, stakeholders can make informed decisions in response to evolving market conditions.
Image Source: Benjamin Cowen/YouTube
