Renowned cryptocurrency analyst Benjamin Cowen has sparked discussions with his recent statement on Ethereum (ETH), suggesting that the second-largest cryptocurrency might see a decline below the $1,000 mark. Cowen’s analysis is based on historical trends of Ethereum’s price movements, indicating that such a drop would not be unprecedented.
The crypto community is on high alert after the U.S. approval of spot Bitcoin ETFs, with Ethereum’s price fluctuations also under scrutiny. Despite reaching a yearly high of $2,720 post the Bitcoin ETF approval, Ethereum struggled to maintain its momentum amidst Bitcoin’s downturn.
Cowen, examining the situation from a technical perspective, believes that Ethereum must experience a dip before it can embark on a new upward trajectory. He references the lows of previous years, specifically 2015, 2016, and 2020, and notes that the 2022 low has not been revisited yet.
In a statement to the crypto community, Cowen suggested that Ethereum will likely test its previous low and could fall below the $1,000 level. However, he also mentioned that historically, Ethereum does not test these lows until the ETH/BTC ratio falls, which is unlikely to happen in January, typically a strong month for Ethereum.
Cowen also highlighted that the anticipation of a spot Ether ETF and Bitcoin’s upcoming Halving event in April might postpone Ethereum’s decline. Meanwhile, financial giants like BlackRock, Fidelity, Grayscale, and ARK Invest are awaiting SEC approval for their ETH ETFs, which, if granted, could propel Ethereum’s price to new heights.