• Crypto analyst Benjamin Cowen suggests that Ethereum (ETH) could plunge more than 50% against Bitcoin (BTC).
• Cowen believes the ETH/BTC pair is likely printing a bearish double-top pattern on the monthly chart.
• He predicts that a potential stock market retracement could be the catalyst for the 52% ETH/BTC decline.
Crypto Analyst Predicts Ethereum Plunge Against Bitcoin
Widely followed crypto analyst Benjamin Cowen says that one event could cause Ethereum (ETH) to plummet relative to Bitcoin (BTC). In a new interview with Crypto Banter host Ran Neuner, Cowen says that the ETH/BTC pair could drop by more than 50% from its current value of 0.063 BTC, worth $1,828.
Potential Bearish Double-Top Pattern on Monthly Chart
Cowen believes that the ETH/BTC pair is likely printing a bearish double-top pattern on the monthly chart, suggesting that holders are using any rally to trade their ETH into BTC. He highlights that historically, the ETH/BTC pair generally declines during the months of June through December, and he predicts a decline to as low as 0.03 BTC ($871), an over 52% decrease from its current value.
Potential Catalyst: Stock Market Retracement
According to Cowen, the catalyst for the 52% ETH/BTC decline could be a stock market retracement. “Remember in late 2017,” says Cowen, “the Ether/Bitcoin pair dropped right here [at .022 BTC]. But then it was the second drop to that level [in 2018] that marked the end of a lot of altcoin reckoning.” He suggests that Ether/Bitcoin could plummet to around 0.03-0.04 BTC level and once it reaches there it may mark an end of altcoin reckoning.
Seasonal Correction in S&P 500
Cowen further states; “I think we had that initial drop but we still probably need to have a secondary drop to that level (0.049 BTC), and even from there it could drop and then maybe roll over and then try to find a bottom.” He believes this potential secondary drop can possibly happen due to seasonal correction in S&P 500 which can affect both crypto markets negatively or positively depending upon its magnitude and direction of movement in respective markets at any given time frame.
Cowen concludes his thoughts by saying; “But I still think this is most likely outcome here”. This statement implies investors should stay vigilant while trading Cryptocurrencies like Ethereum against Bitcoin or any other asset class so as not miss out major changes in price action taking place due various catalysts affecting global financial markets at any given time frame!