Analyst Benjamin Cowen is issuing a warning on Ethereum (ETH) as the second-largest crypto asset lingers around 40% below the 2024 high recorded in March.
Cowen tells his 811,000 YouTube subscribers in a new video that Ethereum could depreciate by at least 5% against Bitcoin (BTC) going forward.
“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.”
Source: Benjamin Cowen/YouTube
Ethereum is trading at 0.04229 BTC at time of writing. At time of writing, ETH/USD is changing hands at $2,399, approximately 48% below the 2024 high of around $4,100 reached on March 11th.
According to Cowen, Ethereum’s current price action is a repeat of history.
“Ethereum/Bitcoin has broken down three times in its history once in 2016, once in 2019. Anyhow again once in 2024.”
Cowen says that in the previous instances that the ETH/BTC pair broke down, the second-largest crypto asset’s US dollar pair recorded a double-digit fall.
“Both the last two times that Ethereum/Bitcoin broke down, 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.”
Source: Benjamin Cowen/YouTube
Generated Image: Midjourney
