Prominent cryptocurrency analyst Benjamin Cowen has expressed caution over Ethereum’s price trajectory, suggesting a possible steep decline. Cowen identifies a historical pattern indicating that Ethereum may have yet to reach its lowest value. According to his analysis, the current market behavior of Ethereum echoes previous cycles, signaling a potential drop.
Warning Signs in Ethereum’s Price Activity
Cowen draws parallels between the present Ethereum market and prior downturns, pointing out that during the last bearish phase, Ethereum didn’t reach a low until it invalidated an upward trajectory from a specific chart formation and retested a significant previous low.
Additionally, the analyst stresses the relationship between Ethereum’s value and its performance relative to Bitcoin. He notes the pattern of Ethereum’s value declining following a decrease in the Ethereum/Bitcoin (ETH/BTC) value ratio.
Analyst Stresses Importance of ETH/BTC Pair
Examining historical data, Cowen suggests that a breakdown in the ETH/BTC ratio could foreshadow a more substantial drop in Ethereum’s price, potentially to a level around $1,200. He indicates that a similar scenario occurred in the past, leading to a significant decrease in Ethereum’s value.
Cowen emphasizes the importance of monitoring the ETH/BTC trading pair, as its current wavering near support levels could precede a downward shift in Ethereum’s price. His analysis points to the necessity of vigilance among Ethereum investors and highlights the potential for the ETH/BTC ratio to serve as an indicator of incoming price movements.
