An analyst who precisely known as the latest crypto correction is issuing a dire warning to Ethereum (ETH) holders.
Crypto strategist Benjamin Cowen tells his 845,000 followers on the social media platform X that Ethereum appears to be like poised to repeat its large corrections witnessed throughout the 2016 and 2019 market cycles.
In keeping with Cowen, an analogous script seems to be taking part in out after Ethereum lately collapsed towards Bitcoin (ETH/BTC).
“This concept for ETH/USD is beginning to look extra plausible.”
Supply: Benjamin Cowen/X
In Could of this 12 months, Cowen predicted that ETH would lose 70% of its worth and plunge near $1,150.
“The final two occasions that ETH/BTC broke down, ETH/USD then dropped roughly 70%.
In a world the place everybody has been preaching altseason for the final 2.5 years right into a BTC dominance uptrend, I assumed I’d remind individuals that there’s nonetheless draw back danger.”
Supply: Benjamin Cowen/X
Cowen goes on to say that Ethereum seems to be particularly mirroring its 2019 cycle and the deep pullback could happen after the Fed pronounces a charge minimize.
“ETH is again right down to this trendline.
If it follows 2019, it would maintain these ranges for a couple of weeks, after which break down once more after the Fed cuts charges.
No ensures, simply following essentially the most helpful analog that has been one of the best information to date this 12 months.”
Supply: Benjamin Cowen/X
Odds that the Fed will minimize charges subsequent month have risen to 100% following this week’s crypto and inventory market correction, based on CME’s FedWatch software.
Final month, Cowen predicted that Bitcoin would witness a deep corrective transfer, noting that BTC gave the impression to be mimicking the 2019 cycle. He additionally forecasted that altcoins would additionally capitulate towards the US greenback.
At time of writing, Ethereum is buying and selling for $2,456.
Generated Picture: Midjourney
