Ethereum (ETH), much like Bitcoin (BTC), has been experiencing a period of sideways trading in the market. The price of ETH has been on a steady decline, with the cryptocurrency crashing by over 20% earlier this year and dipping below the $3,000 mark. This downward trend has raised concerns among investors and analysts about the future of Ethereum’s price movements.
Renowned crypto analyst Benjamin Cowen, the founder of ITC Crypto, has offered some valuable insights into Ethereum’s price movements. Cowen points out a potential correlation between ETH’s price declines and the rising unemployment rates in the United States. Historically, Ethereum has seen a price bottom during the month of December in both 2016 and 2019, coinciding with the peak of the US unemployment rate.
Cowen predicts that this economic trend could lead Ethereum to hit a price bottom around December 2024. Despite the launch of Spot Ethereum Exchange Traded Funds (ETFs), ETH has struggled to gain momentum to reach previous highs. Cowen goes as far as predicting a 50% decline in Ethereum’s price in the coming months, setting a new target of $1,200 by December.
Amidst the broader market volatility, Ethereum has also been facing an increase in selling pressures. MetaAlpha, a hedging and trading service company, recently executed a major transaction depositing 10,000 ETH tokens valued at $23.45 million. Over the past four days, the company has moved a total of $33,589 ETH, worth about $77.55 million, to the Binance crypto exchange.
Cowen suggests that Ethereum might temporarily fall below a recently formed wedge pattern before finding its price bottom. However, he remains optimistic that after hitting the price bottom, Ethereum could be on the path to a significant price recovery. As of the latest data, Ethereum’s price is trading at $2,354, reflecting a slight uptick of 1.26% in the last 24 hours.
The future of Ethereum’s price movements remains uncertain as the cryptocurrency continues to face selling pressures and market fluctuations. Analysts like Benjamin Cowen provide valuable insights into potential price bottoms and recovery trends, offering investors a glimpse into the market dynamics of Ethereum. It is essential for investors to carefully monitor market trends and analyst predictions to make informed decisions regarding their Ethereum investments.
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