- Crypto analyst Benjamin Cowen has warned that Ethereum (ETH) could experience a sharp decline, dropping to the $1,000 low.
- His prediction is based on a cyclic pattern that played out in 2015, 2016, and 2020, with another in 2022 due to play out.
The Ethereum (ETH) community has been served a warning by legendary crypto analyst Benjamin Cowen, who forewarns that the altcoin could plummet to the $1,000 region. Cowen, who was sharing his gloomy prediction with his 790,000 YouTube subscribers, noted that this price-play prediction is based on its cycles.
He explained that ETH has historically gone through major cycle lows at least twice before moving into a new bull phase. He specifically highlights 2015, 2016, and 2020 and confirms that another low in 2022 is yet to be retested. He went on to add:
So at some point, I think Ethereum will test the integrity of that low, back down below $1,000. But, history would also suggest that it won’t test it until after ETH/BTC breaks down. And history also suggests that ETH/BTC probably won’t break down in January because normally January is a good month for Ethereum.
It could still take some time given these narratives that are floating around, given the spot ETF for ETH, given the halving narratives, it could take some time for that to play out.
While some investors might panic and look to ditch ETH and take positions in other altcoins, others will recognize the opportunity to stack up on ETH tokens and ride the proceeding bull phase.
At the time of writing, ETH is trading at $2,260, with a marginal change of less than 1% in the last 24 hours and a weekly drop of 5%.
The altcoin continues to lead the market with 16% dominance and a market cap of over $250 billion, making it the largest altcoin by far. The project further leads in Total Value Locked (TVL), with approximately $31.9 held in its DeFi vaults.
Ethereum (ETH) Plunge: Still a Long Way
In addition to Cowen ruling out the price plunge in the coming days, key developments around the second-largest cryptocurrency by market cap further support a bullish short-term outlook. An Ethereum spot ETF in particular is a big development that could help drive prices higher.
As CNF has reported, BlackRock has already filed an Ethereum spot ETF but recently suffered a setback as the SEC delayed its decision until March.
Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd https://t.co/2zBBvHkrVk
— James Seyffart (@JSeyff) January 24, 2024
Although these delays could hold prices back, the imminent approval of the same will see the altcoin’s value skyrocket. Demand for Ethereum from institutional investors, as a fast-growing investment class, has significantly grown in the past year.
In addition to the ETF, technical developments around the network could also drive prices, with Ethereum developers having set a timeline for the latest updates to the ‘Dencun’ testnet. Trials of Dencun will be conducted on the Sepolia and Holesky test networks on January 30 and February 7, respectively.
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