Crypto analyst Benjamin Cowen says Ethereum (ETH) is entering a “window of weakness” that may extend into December as the asset struggles to hold key levels against both the US dollar and Bitcoin (BTC).
In his latest update, Cowen says ETH continues to oscillate in a familiar range between $4,900 and $2,900.
He notes that the pattern resembles the last cycle when ETH rallied near $4,900 before breaking down to $2,100.
“Now $2,100 is also an important level because $2,100 for ETH would be basically back at the low it had in June.”
He adds that a move to $2,100 was not his base case earlier in the year, but becomes more likely if Ethereum loses its current support at around $2,900.
Cowen expects the broader weakness to last another three to four weeks due to the seasonal behavior of ETH’s valuation relative to Bitcoin. He points to repeated turning points for ETH Bitcoin in December across multiple cycles including 2015, 2016, 2017, 2018, 2019 and 2020.
He says ETH/BTC bottoms this cycle near the same level as last cycle, rallies to a similar area and then drops back toward 0.0029 BTC.
“I’m looking for ETH Bitcoin to continue to bleed into December.”
Bitcoin is trading at $87,462 at time of writing, while ETH is at $2,885.
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