- Analyst Benjamin Cowen forecasts Ethereum’s potential drop below $1,000 based on historical patterns.
- Regulatory postponements on spot ETH ETFs contribute to market uncertainty.
- Ethereum’s price movement closely linked to Bitcoin’s performance, with current trading at $2,308.
Renowned crypto analyst Benjamin Cowen has sent ripples through the market with his latest forecast on Ethereum (ETH), suggesting a looming possibility of the cryptocurrency plunging below the $1,000 mark. Cowen, known for his technical analysis prowess, pointed to historical trends in Ethereum’s price movements, hinting at a downward trajectory.
ETH, often hailed as the flagship altcoin in the digital currency arena, experienced a surge to $2,720 earlier this year following the green light for spot Bitcoin exchange-traded funds (ETFs) in the United States. However, the recent downturn in Bitcoin’s price exerted pressure on Ethereum, causing it to retrace its gains.
Cowen’s analysis delves into past patterns, particularly highlighting years like 2015, 2016, and 2020, to underscore the likelihood of ETH revisiting lower price levels. Despite his bearish outlook, Cowen emphasized that Ethereum’s descent below $1,000 might be contingent upon a dip in the ETH/BTC pair, a scenario less likely to unfold in January, historically a favorable month for Ethereum.
Nevertheless, the anticipation surrounding spot Ether ETFs remains palpable in the market, with major players such as BlackRock, Fidelity, Grayscale, and ARK Invest expressing interest. These entities are eagerly awaiting regulatory approval from the Securities and Exchange Commission (SEC) to launch ETH ETFs, following in the footsteps of Bitcoin.
However, the SEC’s recent decision to defer judgment on these ETF proposals has momentarily dampened hopes, prompting a delay in Ethereum’s potential rally. Yet, industry experts believe that eventual approval could propel Ethereum to new heights, mirroring Bitcoin’s ascent post-ETF approval.
Amidst these developments, Ethereum’s price trajectory appears intertwined with Bitcoin’s movements, with ETH currently trading at $2,308, buoyed by Bitcoin’s breach of the $43,000 threshold. The Relative Strength Index (RSI) stands at 64.75, indicating robust buying activity and resilience among investors.
As the crypto market braces for potential shifts, Cowen’s cautionary forecast serves as a reminder of the inherent volatility in digital asset markets, urging stakeholders to tread carefully amidst uncertain waters.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.