Ethereum 2019 Correction Repeating? Analyst Warns Ethereum May See Larger Pullback

Ethereum 2019 Correction Repeating? Analyst Warns Ethereum May See Larger Pullback

Closely followed analyst Benjamin Cowen says Ethereum may be in the midst of repeating a historical pattern that could bring ETH down to much lower levels.

In a new strategy session, Cowen tells his 790,000 YouTube subscribers that in the last crypto bear market, Ethereum didn’t bottom out until canceling out a previous breakout from a rising wedge and then retesting a macro low.

He also notes that ETH crashed immediately after the Ethereum/Bitcoin (ETH/BTC) pair broke down.

With ETH/BTC teetering on support, Cowen says that the next breakdown could be what leads to a leg down for ETH/USD, which he says may see Ethereum trading at the $1,200 level.

“It was not only the process of the unvinversion of the yield curve, but it was also the breakdown of the ETH/BTC valuation.

If you look at the ETH/BTC valuation, you will notice it was precisely here in July of 2019 when ETH/BTC broke down. And in July of 2019, that is where ETH/USD started to go down [from $362.39], and that is where ETH/USD went back through this wedge and came all the way back down here ($118).

You will notice in fact, that this low that ETH put in in December 2019, was actually slightly above this higher low [at $95]. This higher low here [November 2022] happened to be around $1,000, so if it’s going to play out in a similar fashion – which it very well might not – it would imply going back and testing that low.

But again, you will notice that this drop did not occur until after the ETH/BTC valuation broke down. It was after ETH/BTC broke down that ETH/USD finally got this drop. And where are we today? We are close to seeing a very similar process play out.”

Source: Benjamin Cowen/YouTube

At time of writing, ETH/BTC is trading at 0.05581 BTC ($2,927), still above Cowen’s support at 0.049 BTC ($2,570).

Generated Image: Midjourney

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