Prominent crypto analyst Benjamin Cowen is cautioning investors about the possibility of a crash in December for Ethereum (ETH), the second-largest digital asset by market cap. Cowen, who has a strong following of 869,900 on the social media platform X, cites historical patterns as the basis for his warning. He points out that in both 2016 and 2024, ETH experienced significant drops in April and August, and also in December in 2016. Therefore, Cowen suggests that there is a decent chance that ETH will follow a similar pattern this year, with another drop before the end of the year and reaching its lowest point in December.
At the time of writing, Ethereum is trading at $2,517, showing a slight decrease over the past 24 hours. Cowen also notes that the ETH/BTC pair could start to decline around the same time and may fall as low as 0.036 if it fails to hold its support around 0.038. He believes that the low point for the 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 target would be the 2016 high of 0.036. Cowen has consistently stated over the past three years that the low for this cycle will likely be between 0.03 and 0.04.
Currently, the ETH/BTC pair is valued at 0.0372. According to Cowen, the pair will not reach its low until it surpasses its 50-day simple moving average (SMA). He emphasizes that as long as ETH/BTC fails to rise above the 50-day SMA, it is reasonable to assume that the low point may not have been reached yet. In 2016 and 2019, once the actual low was established, ETH/BTC experienced a strong upward movement above the 50-day SMA, which has not yet occurred in the current cycle.
It is important to note that the opinions expressed by Benjamin Cowen are not investment advice, and investors should conduct their own research before making any high-risk investments in cryptocurrencies or digital assets. Transfers and trades are undertaken at one’s own risk, and any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice.
