Benjamin Cowen, known as one of the leading analysts of the cryptocurrency markets, believes that Ethereum (ETH) and other altcoins are on the verge of a major market correction. Cowen offers important perspectives to investors with his experience and expertise in analyzing the price movements of crypto assets over the years.
The recent changes in the value of Ethereum against Bitcoin (ETH/BTC) are one of the critical points that Cowen drew his attention to. The price movements of the ETH/BTC trading pair can provide important clues about the overall health of the crypto market and the relationships between assets.
Cowen is carefully watching whether the ETH/Bitcoin pair breaks certain technical levels and how these levels act as support or resistance. In particular, the ETH/Bitcoin pair breaking above the bull market support band and maintaining this level as support is a sign that Cowen is waiting for the next big bullish move. According to Cowen, with this move we may see a final upward move before market capitulation.
“For bullish validation you need to see ETH/Bitcoin break above the bull market support band and then start holding that level as support. “And if that doesn’t happen, then I still think it’s going to be a lower high once again, and everyone will be excited once again that this will ultimately resolve to the downside.”
NEWS CONTINUES BELOW
Cryptocurrency markets often move in certain cycles and patterns. By examining these cycles, analyst Benjamin Cowen states that the TOTAL3 chart, which measures the performance of Ethereum (ETH) and altcoins against Bitcoin, has experienced a significant correction, repeating a pattern seen in the past.
According to Cowen, in past cycles a correction usually occurs after a point where ETH/Bitcoin capitulation occurred and altcoins lost strength against Bitcoin. However, we observe that during this correction, altcoin/Bitcoin pairs have not yet completely weakened and maintain certain support levels. In particular, the analyst notes that they do not close weekly even at low levels.
This situation is very similar to a scenario that occurred in June 2019. Similarly, at that time, altcoin/Bitcoin pairs made a final rally and moved towards the bull market support area, but could not break this support and subsequently fell. Cowen suggests that a similar situation is happening now and that there may be one last rally before reaching the lowest levels in the summer months.
This analysis highlights the importance of relying on historical data to predict future price movements in crypto markets. Cowen’s approach provides investors with a guide to assessing potential risks and opportunities in the markets. Therefore, investors should approach such analyzes with caution and make their own decisions by doing their own research.
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