History’s Warning: Is Ethereum Set For A Huge Plunge? Here Is What This Analyst Predicts
October 11 2023 - 12:00AM
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Ethereum (ETH) has maintained its spot as a leading altcoin.
However, a recent analysis from Benjamin Cowen indicates that its
journey, at least in comparison to Bitcoin (BTC), could have
followed a better trajectory. In a space where past trends
can sometimes indicate future outcomes, ETH’s price behavior, when
viewed against BTC, offers a tale of potential concern. Related
Reading: Is Ethereum’s Staking Boom A Ticking Time Bomb? JPMorgan
Weighs In Ethereum Stumbling Blocks In 2023 A leading voice in the
crypto analytical community, Benjamin Cowen, expressed his lack of
enthusiasm for ETH’s performance in 2023 during a YouTube video.
The ETH / BTC valuation, a critical metric for gauging relative
performance, is the bedrock for his statements. According to his
observations from monthly charts, Cowen’s analysis primarily orbits
around the ETH / Bitcoin valuation, which has trended downwards.
The analyst cites patterns from 2019, a pre-halving year, where
ETH’s value relative to BTC fell significantly. That year alone,
the ETH / BTC valuation declined by about 49%. According to the
analyst, fast forward to 2023, and ETH’s comparative valuation has
already plummeted by 20.56%. If Cowen’s prediction and the patterns
from 2019 hold any water, Ethereum could be staring down a deeper
abyss. Yet, it’s not all bleak. Cowen remains measured, as he
acknowledges the change the nature of “The Merge” brought on
Ethereum’s ecosystem, believing it is a “game changer.” While Cowen
wasn’t overly optimistic, the analyst refrained from forecasting
ETH’s next moves, primarily due to the unpredictable ripple effects
of The Merge. The Merge: A Game-Changing Variable? The Merge, a
much-anticipated Ethereum upgrade, has already marked its influence
on the ETH / BTC valuation. Ethereum’s weekly charts have been in a
continuous downtrend following its implementation, creating further
lows. Cowen recognizes that The Merge, with its deflationary
component, could mean ETH might not toe its historical line. This
deflationary aspect could be Ethereum’s wild card, making its
trajectory even more elusive. Notably, while many parallels might
be drawn between 2019 and 2023, such updates as The Merge means
that Ethereum’s journey this year might still hold a few surprises.
Related Reading: Here’s Why The Ethereum Price Fell Toward $1,500
Meanwhile, the Ethereum price against the US dollar has seen quite
a bearish trend, particularly over the past week. The second
largest crypto by market capitalization has plunged nearly 5% in
the past 7 days, bringing its price to fall below $1,600 with a
current trading price of $1,569. Featured image from Unsplash,
Chart from TradingView
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