Benjamin Cowen, an expert in cryptocurrencies who specializes in analysis and trading, has expressed worries over the possibility of a major price drop for Ethereum (ETH).
Recently, Cowen suggested that the price of Ethereum (ETH) could drop by as much as 60%, based on his assessment that important support levels had been breached in the ETH/Bitcoin (BTC) market.
The relationship between Ethereum’s value and Bitcoin’s value, represented by the ETH/BTC trading pair, is commonly used to gauge investor sentiment towards these top cryptocurrencies and determine which one is more dominant in the market.
Based on Cowen’s examination, the dropping of significant resistance points in the ETH/BTC chart might indicate a potential decrease in Ethereum’s value in the upcoming period.
Based on the cryptocurrency expert’s assessment, ETH/BTC broke significant support levels twice before, leading to a 60% decrease in the value of ETH against the USD from its previous peak within a three to six month timeframe. He pointed out that ETH/BTC has recently lost this support, but it’s unclear what consequences this event may bring at present.
Cowen’s cautionary statement emerges during a time when the cryptocurrency market is particularly unpredictable and uncertain, marked by price swings and varied trading activity for Ethereum.
The disappearing backing for the ETH–BTC exchange rate increases the doubt over Ethereum’s price stability, as it strives to keep above the significant $3,000 threshold.
At the moment of composition, Ethereum (ETH) had dropped by 3% in the previous 24 hours to a price of $3,055. As per crypto expert Ali’s assessment, the significant support level for Ethereum lies between $2,000 and $2,430. Approximately 9.37 million wallets contain approximately 53 million ETH in this range.
Although Cowen’s forecast of a 60% decrease may seem alarming, it’s vital to keep in mind that predictions aren’t set in stone. Past patterns and possible consequences are worth examining, but history doesn’t always repeat itself when it comes to future results.
Meanwhile, the Ethereum community is having discussions about modifying its monetary policy regarding ETH. This debate came about due to suggestions from two Ethereum experts aimed at checking the fast growth of the staking pool. Their proposals include decreasing the rate of new ETH creation and consequently diminishing the incentives for staking.
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2024-04-16 18:53