A widely followed crypto analyst is issuing a warning to investors, saying that top altcoin Ethereum (ETH) might see a crash in December.
In a new strategy session, prominent crypto trader Benjamin Cowen tells his 869,900 followers on the social media platform X that based on historical patterns, the second-largest digital asset by market cap may drop during the end of the year, reaching its lowest point in December.
“In 2016, ETH had big drops in April, August, and December. In 2024, ETH has had big drops in April and August. So decent chance it plays out in a similar fashion, with one more drop by ETH before EOY (end-of-year), with the low in December.”
Source: Benjamin Cowen/X
Ethereum is trading for $2,517 at time of writing, a marginal decrease during the last 24 hours.
Cowen goes on to note that the ETH/BTC pair could start to dip around the same time and could fall to as low as 0.036 if its support around 0.038 does not hold.
“ETH/BTC just took out the prior low. As I said, if 0.038 does not hold, 0.036 is likely the next stop. Structurally, I think the low will be in before EOY (2nd week of January at the latest). Next likely target if 0.038 fails is the 2016 high of 0.036. As I have said for three years, the low this cycle is likely between 0.03-0.04.”
Source: Benjamin Cowen/X
ETH/BTC is currently valued at 0.0372.
According to Cowen, the ETH/BTC pair won’t hit its low until it fails to get above its 50-day simple moving average (SMA).
“As I said a month ago, as long as ETH/BTC fails to get above the 50-day SMA, it makes sense to assume the low may not be in. In 2016 and 2019, once the actual low was in, ETH/BTC had a strong move above the 50-day SMA (still something that has not yet happened).”
Source: Benjamin Cowen/X
Generated Image: DALLE3
