Ethereum Alert: Analyst Benjamin Cowen Warns of Potential Further Decline Against Bitcoin, Reveals Targets
Analyst Benjamin Cowen has raised concerns about Ethereum (ETH) as the second-largest cryptocurrency struggles to regain its footing, currently sitting approximately 40% below its peak in March 2024.
In a recent video addressing his substantial YouTube following of 811,000 subscribers, Cowen suggested that Ethereum might face a potential decline of at least 5% compared to Bitcoin (BTC) in the near future.
Assessing the situation, Cowen remarked, “When I look at this chart what do I see? I see that Ethereum/Bitcoin is likely going to form a bottom between now and the end of the year. It’s possible that it’s already in, but I would still say I’m still sort of leaning that it could go sub 0.04 BTC.”
Currently, Ethereum is trading at 0.04229 BTC, with its USD value at $2,399, marking a significant 48% drop from its peak earlier in 2024.
Cowen drew parallels to historical trends, noting, “Ethereum/Bitcoin has broken down three times in its history, once in 2016, once in 2019, and again in 2024.”
Highlighting past occurrences, Cowen pointed out that whenever the ETH/BTC pair experienced a breakdown, Ethereum’s USD value plummeted by double digits. He elaborated, “Both the last two times that Ethereum/Bitcoin broke down, in 2016 and 2019, ETH (ETH/USD) dropped 70%. When it broke down here before the pandemic it was like 68%. And in 2016, it was 70%. So two 70% drops after Ethereum/Bitcoin broke down. And Ethereum/Bitcoin broke down in 2024. But 70% down would actually get you closer to $1,200.”
Cowen’s analysis suggests a potentially challenging road ahead for Ethereum, with the possibility of significant price corrections looming on the horizon.
The data and insights provided by Cowen serve as a cautionary tale for investors in the volatile cryptocurrency market, emphasizing the importance of closely monitoring market trends and making informed decisions to navigate the ever-changing landscape of digital assets.
