The recent analysis provided by Benjamin Cowen sheds light on the downward trend observed in the Ethereum/Bitcoin (ETH/BTC) pair amidst the turbulent crypto market. According to Cowen, the ETH/BTC pair is currently on the downside, with a history of steep declines of around 70% in the past. This raises concerns about the potential for further downside risk in the near future.
Warning to the Crypto Community
Cowen’s warning to the crypto community comes at a time when many have been eagerly anticipating an Altcoin season for the past 2.5 years. Despite the hopeful outlook, Cowen emphasizes the need to be cautious and aware of the possibility of a significant downward movement in the ETH/BTC pair. His analysis indicates that the pair is currently being rejected by the bull market support band, hinting at potential trouble ahead.
Market Trends and Predictions
Cowen’s prediction of a potential rejection by the bull market support band is based on the recent price pump that ETH/BTC experienced. This pump resembles patterns seen in previous market cycles, particularly before a summer capitulation. Furthermore, the launch of Bitcoin Spot Exchange-Traded Funds (ETFs) triggered a sharp rally in ETH/BTC, mirroring trends from previous bull cycles that ultimately led to new lows.
Since November 2021, there has been a noticeable macro downtrend in the ETH/BTC pair, exacerbated by the merger of Ethereum and Bitcoin. Despite this, the market did not experience an abrupt decrease, leading investors to hold onto ETH instead of BTC due to perceived resilience. Cowen’s prediction of ETH/BTC reaching between $0.03 and $0.04 by summer reflects his confidence in the pair’s downward trajectory.
The performance of Ethereum and Bitcoin has been increasingly diverging in the current cycle, as highlighted by on-chain analytics firm Glassnode. This divergence is attributed to poorer performance in ETH price compared to previous cycles and all-time highs, indicating a weaker trend in capital rotation. With the market dynamics evolving, investors are urged to conduct thorough research before making any investment decisions.
Overall, Benjamin Cowen’s insights provide valuable perspective on the current state of the ETH/BTC pair and the broader crypto market. While there are challenges and uncertainties ahead, staying informed and cautious can help navigate the volatile landscape of cryptocurrency investing.
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