Renowned cryptocurrency analyst Benjamin Cowen is sounding the alarm on Ethereum (ETH), predicting a significant decrease in its price.
Cowen, who boasts a substantial following of 801,000 subscribers on YouTube, explains to his audience that Ethereum has dipped below the bull market support band (BMSB). This indicator, comprised of a 20-week simple moving average and a 21-week exponential moving average, is used to determine whether an asset’s price is in bullish or bearish territory.
“It has been approximately 30 weeks since Ethereum last fell below its bull market support band or its 20-week simple moving average. Now, we find ourselves closing below it once again.”
According to Cowen, Ethereum has experienced drastic price declines during two previous instances that closely resemble the current situation when it closed below the BMSB.
“In both cases, after falling below the Bull Mark Support Band, Ethereum’s value against the US dollar plummeted by approximately 50%… If history repeats itself, a 50% drop from the current price of around $2,970 would bring ETH down to approximately $1,400.”
As of writing, Ethereum is trading at $2,902.
While Cowen anticipates the Ethereum/Bitcoin (ETH/BTC) pair to reach its bottom in the following weeks, he believes it may take longer for the Ethereum/US dollar (ETH/USD) pair to stabilize.
To stay updated on the latest cryptocurrency news, make sure to subscribe for email alerts and follow The Daily Hodl on social media platforms such as X, Facebook, and Telegram.
Disclaimer: The opinions expressed in The Daily Hodl are not to be taken as investment advice. Investors are encouraged to conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Please be aware that any transfers or trades you undertake are done at your own risk, and you are solely responsible for any resulting losses. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Kindly note that The Daily Hodl engages in affiliate marketing activities.
