Widely followed crypto analyst Benjamin Cowen says that Ethereum (ETH) is potentially on the cusp of bottoming out against Bitcoin (BTC).
In a new strategy session, crypto trader Benjamin Cowen tells his 821,000 YouTube subscribers that the low for Ethereum in its Bitcoin pair (ETH/BTC) is either already in or very close to it.
Says Cowen,
“The low for ETH/BTC is either in or very, very close to being in both in terms of valuation and in terms of time. I would say that after three years, we finally have at least a little bit of evidence to suggest the bottom might actually be in.
This is the first time that I’ve looked at the chart and thought maybe it is actually in and it’s been a really frustrating wait because for so long I’ve been reluctant to say that it could be in on every single one of these lower highs, and on every one of [them]…
People [were] sort of laughing and saying there’s no way it could possibly go lower, but I will say it is possible that ETH/BTC has bottomed.”
To support his thesis, Cowen looks at historical trends, noting that ETH/BTC dipped by about 30% during the last cycle, a move that has already been made this time around.
“I want to talk about what is the evidence to suggest the bottom could be in and what’s the evidence that would say let’s hold off before we make any overly bold proclamations.
The first thing is this pattern – this pattern is pretty telling where you get double tops, where the second top is a little bit lower, you set a low in between those two tops that eventually acts as support for a while and then eventually ETH/BTC breaks down.
In 2016, you can see that ETH/BTC fell about 50% after it broke below the range low. In 2019, it fell about 30% after it broke the range low. This cycle it’s already fallen about 30% and so that’s at least some evidence to make me believe that if the low’s not in it’s probably getting pretty close.”
Source: Benjamin Cowen/YouTube
ETH/BTC is currently trading at 0.03914 Bitcoin worth $3,195.
Generated Image: Midjourney
