Ethereum News: Popular Analyst Predicts ETH Fall To $1,200 By December

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As a researcher with a background in financial analysis and a keen interest in blockchain technology, I have been closely monitoring Ethereum’s price movements for quite some time now. The recent predictions by analyst Benjamin Cowen of a potential ETH price drop to $1,200 by 2024 caught my attention due to the striking similarities between the current wedge formation and the one observed in 2019.

Financial Update: Cryptocurrency expert Benjamin Cowen has voiced apprehensions about Ethereum‘s future price trend, suggesting a potential drop to around $1,200 by December 2024. This prediction is derived from an in-depth examination of Ethereum’s price trends, which seem to be shaping up like the wedge pattern seen in 2019. This past occurrence hints that Ethereum might be on the brink of a similar market correction.

Ethereum News: Benjamin Cowen Predicts ETH Price Drop to $1,200

Analyst Benjamin Cowen recently posted a tweet featuring a chart depicting a ‘wedge’ pattern in the price trend of Ethereum, similar to what was observed in 2019. As per Cowen’s analysis, these patterns have typically been followed by substantial price drops in the past.

As a crypto investor, I’ve noticed that the wedge formation in 2019 was followed by a significant drop in prices after the Federal Reserve implemented a rate cut. Now, based on current market conditions and similar price patterns, financial firm Cowen predicts that we might be heading for another downturn. This potential decline could potentially push the price of Ethereum down to around $1,200 by the end of 2024.

Reinforcing his forecasts, Cowen examined how Ethereum’s price reacted to major economic events, such as shifts in the Federal Reserve’s policies. With a projected 0.5% reduction in US Fed interest rates, this analyst anticipates that ETH will fall below its current wedge pattern, causing a sell-off reminiscent of previous occurrences.

Historical Patterns and Market Dynamics

Looking at the current wedge formation of Ethereum and comparing it to its pattern in 2019 could provide insights about potential future trends. Back in 2019, Ethereum’s price exhibited a gradual decrease, forming a wedge which subsequently broke downward.

Ethereum News: Popular Analyst Predicts ETH Fall To $1,200 By December

In a similar vein, Ethereum’s current structure exhibits successive troughs at $886, $1,069, $1,515, and more recently, $1,954. These types of patterns often indicate a growing potential for a reversal or correction moving downwards.

Moreover, the broader market atmosphere related to Ethereum updates features significant sales from the Ethereum Foundation and wallets associated with Vitalik Buterin. This has fueled a more pessimistic outlook among traders. Large transactions like these frequently spark speculation and cause investors to adopt a cautious stance, which may ultimately result in price decreases.

As a data analyst, I’ve observed a consistent trend in the Ethereum market: Metalpha has been offloading Ether for four days running, according to on-chain analytics platform LookonChain. This prolonged selling not only intensifies the overall market pressure but also aligns with the bearish predictions made by many analysts.

Implications on Market And ETH Price Action

Based on my analysis following Cowen’s perspective, if Ethereum aligns with the proposed downtrend by the wedge pattern, a substantial decrease in its price might occur. As I have observed, this is the potential path the market may take.

Back in 2016 and 2019, the ratio of ETH to BTC as well as the value of ETH against the USD plummeted by approximately 70%. At that ‘risk level’ (70% drop), ETH was worth around $1208.

At the same time, the pessimistic feeling about a particular asset class is intensifying as more large investors (whales) are selling off their assets.

Enhancing the pessimistic Ethereum sentiment, the Moving Average Convergence Divergence (MACD) graph on the weekly scale indicates a downward trend with the MACD line sitting beneath the signal line, hinting at growing bearish forces. The latest crossover event, where the MACD line fell below the signal line, underscores escalating selling pressure.

Currently, as I’m typing this, Ethereum (ETH) is valued at approximately $2,351.86. Over the past 24 hours, this represents a 1.63% growth in price. This upward trend is supported by an impressive 14.94% surge in trading activity, indicating a busier market.

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2024-09-10 15:41