The cryptocurrency market has been experiencing a period of turbulence, with the spotlight turning to Benjamin Cowen, the founder and CEO of Into The Cryptoverse. Cowen has offered his insights on the recent downtrend observed in the Ethereum/Bitcoin (ETH/BTC) pair. According to Cowen, the ETH/BTC pair is currently on a downward trajectory, with the potential for further downside risk looming. He points out that the last 2 times the pair declined, ETHUSD experienced a significant drop of approximately 70%.
Potential Warning Signs
Despite the crypto community’s anticipation of an Altcoin season for the past 2.5 years, Cowen warns that there is still a possibility of a downward movement. He highlights that ETH/BTC is currently being rejected by the bull market support band, a prediction he made days ago due to a price pump. Cowen suggests that the current situation mirrors the last cycle of rate cuts right before summer capitulation.
Following the launch of Bitcoin Spot Exchange-Traded Funds (ETFs), Cowen notes that ETH/BTC experienced a sharp rally. However, he cautions that this rally may be similar to the trend seen in the previous bull cycle, leading to new lows. Cowen also points out that there has been a clear macro downtrend since November 2021, especially after the merger of the ETH/BTC pair. Despite the gradual decline, investors have shown confidence by holding on to ETH instead of BTC through multiple lower highs.
Predictions and Projections
Prior to the Bitcoin Halving, Cowen predicted that the bull market support band would reject ETH/BTC in the event of a rebound, similar to what was observed with the BTC spot ETF launch. Regardless of the outcome, Cowen is confident that ETH/BTC will reach a range between $0.03 and $0.04 by the summer. As two of the leading cryptocurrency assets, Ethereum and Bitcoin continue to attract significant interest.
On-chain analytics firm Glassnode has pointed out a shift in performance between Ethereum and Bitcoin. The firm highlights that the performance of these two digital assets has been diverging in the 2023-2024 cycle, with Ethereum showing weaker trend in capital rotation. This trend is particularly noticeable when compared to previous cycles and all-time highs.
The analysis of the Ethereum/Bitcoin pair’s recent downtrend reveals potential warning signs of further downside risk. While market trends and predictions can provide valuable insights, it is important for investors to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.
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