Cryptocurrency analyst Benjamin Cowen is warning that a weakening stock market may cause Ethereum (ETH) to retest lower price levels.
In a new strategy session, Cowen tells his 889,000 YouTube subscribers that the S&P 500 may continue to show weakness in April, which, based on historical precedence, may result in ETH also declining.
“What I’m wondering is what happens if you do see the S&P 500 continue to show weakness into early to mid-April? Remember, we said there’s going to be weakness by the stock market between February OPEX (Option Expiration Week) and March OPEX. We got that, but I also said there’s a possibility that it could extend into early to mid-April as well before there’s a larger counter-trend rally.
And the reasons for that could be due to tariff uncertainty on April 2nd. It could also just simply be due to, there’s a lot of macro data coming out in early to mid-April that I think the markets are going to be interested in. And one of the reasons I think the markets are going to be interested in it is because with all these tariffs, it could potentially have an effect on inflation.”
Cowen says ETH may drop to its logarithmic trendline, potentially as low as $1,044, amid recessionary pressures, before reclaiming the $3,000 level as support.
“I’m just looking over here at ETH/USD [on the weekly chart], and I see a triple top, and I just have to wonder does it ultimately culminate in a recession, where everyone thinks that by the time the recession is declared it’s over, but the reality is the market was pricing it in well ahead of time, so that you get this big drop and then a big move out of it. We’ve been talking about that for a while, and it’s the whole idea that ETH goes home.”
Source: Benjamin Cowen/YouTube
ETH is trading for $1,909 at time of writing, up 4.7% in the last 24 hours.
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