Crypto analyst Benjamin Cowen says Ethereum (ETH) is poised for a big breakout after nearly a year of horizontal reaccumulation.
In a recent strategy post, Cowen said that the price range of $2,000 to $4,000 is a major reaccumulation zone for Ethereum heading for higher prices.
“There seems to be a good probability that Ethereum will eventually come out of this long reaccumulation zone, which is between $2,000 and $4,000. I think $2,000 to $4,000 is the reaccumulation zone. If we get out of this and go higher then things can get a little crazy. If we go higher, there is no guarantee that we will go back to these prices.”
We can define Reaccumulation as the process in which the asset moves sideways during an uptrend. This process can take weeks to months (sometimes years) to complete, which is ultimately a pause in a major uptrend.
Cowen thinks Ethereum could completely exit the current sideways market structure by June or July of this year. It then presents a scenario where it manages to enter a parabolic rally that ends with a bear market returning to the reaccumulation zone.
“Let’s say we get out of this downtrend by summer and return to previous all-time highs, and then Ethereum explodes and we start trending higher, maybe we’ll hit $7,000-8,000. Then we have to move horizontally for half a year…
Then, if such an eventual market cycle peaks, then this downtrend could end somewhere below a potential accumulation range… This will happen if it repeats what happened last time.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.