Crypto Analyst Benjamin Cowen Predicts Ethereum Breakdown More Likely After Recent ETH Correction

An analyst with a track record of accurately predicting crypto market movements is sounding a cautionary alarm for Ethereum (ETH) investors.

Benjamin Cowen, a crypto strategist who shares insights with a substantial following on the social media platform X, is raising concerns about Ethereum potentially undergoing significant corrections akin to those seen in the 2016 and 2019 market cycles.

Cowen points out that Ethereum’s recent decline against Bitcoin (ETH/BTC) is signaling a potential repeat of past correction patterns. He remarked, “This idea for ETH/USD is starting to look more believable.”

In a previous forecast from May, Cowen predicted that ETH could experience a 70% devaluation, dropping to around $1,150. He noted, “The last two times that ETH/BTC broke down, ETH/USD then dropped approximately 70%. In a world where everyone has been preaching altseason for the last 2.5 years into a BTC dominance uptrend, I thought I would remind people that there is still downside risk.”

Drawing parallels to Ethereum’s 2019 cycle, Cowen suggests that a significant pullback might occur following an announcement of a rate cut by the Federal Reserve. He stated, “ETH is back down to this trendline. If it follows 2019, it will hold these levels for a few weeks, and then break down again after the Fed cuts rates. No guarantees, just following the most useful analog that has been the best guide so far this year.”

The probability of a Fed rate cut next month has surged to 100% following recent corrections in both the crypto and stock markets, as indicated by CME’s FedWatch tool.

Earlier, Cowen had also foreseen a substantial corrective movement for Bitcoin, noting similarities with the 2019 cycle. He had predicted that altcoins would also undergo a decline against the US dollar.

At the time of reporting, Ethereum is trading at $2,456.

It’s important for investors to stay informed about market trends and developments to make well-informed decisions.