Crypto analyst Benjamin Cowen is cautioning investors about the possibility of a crash in Ethereum (ETH) in December. Cowen, a prominent trader in the crypto space, believes that based on historical patterns, the second-largest cryptocurrency by market cap may experience a drop towards the end of the year, with December being the month of the lowest point.
Cowen points out that in both 2016 and 2024, ETH had significant drops in April and August, followed by another drop in December. He suggests that there is a decent chance that this pattern will repeat, leading to another drop in ETH before the end of the year, with the lowest point occurring in December.
As of now, Ethereum is trading at $2,517, showing a slight decline in the last 24 hours. Cowen also predicts that the ETH/BTC pair could start to dip around the same time, potentially falling to as low as 0.036 if it fails to hold its support at 0.038.
Cowen believes that the low for the ETH/BTC pair will likely occur before the end of the year, with the second week of January being the latest timeframe. If the support at 0.038 fails, the next likely target would be the 2016 high of 0.036. He has previously stated that he expects the low for this cycle to be between 0.03-0.04.
Currently, the ETH/BTC pair is valued at 0.0372. According to Cowen, the pair won’t reach its low until it is unable to surpass its 50-day simple moving average (SMA). He suggests that as long as ETH/BTC fails to rise above the 50-day SMA, it is reasonable to assume that the low has not yet been reached. In previous cycles, once the actual low was established, ETH/BTC experienced a strong upward movement above the 50-day SMA.
It is important to note that Cowen’s opinions are not investment advice, and investors should conduct their own research before making any high-risk investments in cryptocurrencies or digital assets. The Daily Hodl, where Cowen’s insights were shared, does not endorse the buying or selling of cryptocurrencies and is not an investment advisor.
