Crypto Analyst Benjamin Cowen Predicts Massive Ethereum Breakdown
A renowned crypto analyst, Benjamin Cowen, who accurately called the recent cryptocurrency correction, is issuing a dire warning to Ethereum (ETH) holders. According to Cowen, Ethereum appears poised to repeat its massive corrections witnessed during the 2016 and 2019 market cycles.
Cowen shared his insights on the social media platform X, highlighting that Ethereum recently collapsed against Bitcoin (ETH/BTC). “This idea for ETH/USD is starting to look more believable,” he noted.
Predicting a 70% Decline
In May of this year, Cowen predicted that ETH would lose 70% of its value and plunge close to $1,150. He explained, “The last two times that ETH/BTC broke down, ETH/USD then dropped approximately 70%. In a world where everyone has been preaching altseason for the last 2.5 years into a BTC dominance uptrend, I thought I would remind people that there is still downside risk.”
Mirroring the 2019 Cycle
Cowen also noted that Ethereum appears to be specifically mirroring its 2019 cycle and that a deep pullback may occur after the Fed announces a rate cut. “ETH is back down to this trendline. If it follows 2019, it will hold these levels for a few weeks, and then break down again after the Fed cuts rates. No guarantees, just following the most useful analog that has been the best guide so far this year.”
Federal Reserve Rate Cuts
The odds that the Fed will cut rates next month have risen to 100% following this week’s crypto and stock market correction. Last month, Cowen predicted that Bitcoin (BTC) would witness a deep corrective move, noting that BTC seemed to be mimicking the 2019 cycle. He also forecasted that altcoins would also capitulate against the US dollar. At the time of writing, Ethereum is trading for $2,456.
Terminology Explained
- Cryptocurrency Correction: A reduction in the price of a cryptocurrency after a period of increases.
- ETH/BTC: The trading pair representing Ethereum and Bitcoin. It shows how much Bitcoin (BTC) you need to buy one Ethereum (ETH).
- Altseason: A period when alternative cryptocurrencies (altcoins) perform better than Bitcoin.
- BTC Dominance: The ratio of Bitcoin’s market capitalization to the overall cryptocurrency market capitalization.
Disclaimer: Opinions expressed are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility.
