Recently, Ethereum (ETH) has been experiencing a period of sideways trading, much like Bitcoin. This stagnant trend has raised concerns among investors and analysts, leading to predictions of a potential price bottom in the coming months. One such analyst, Benjamin Cowen, the founder of ITC Crypto, has shared his insights on Ethereum’s price movements, linking them to the rising unemployment rates in the United States.
Cowen suggests that there is a historical correlation between Ethereum’s price declines and the peak of US unemployment rates. By analyzing previous data from 2016 and 2019, where Ethereum hit its price bottom in December, Cowen predicts a similar scenario for December 2024. With the current rise in unemployment rates in the US, Cowen speculates that Ethereum could potentially reach a new price bottom by the end of the year.
In the past few months, Ethereum has been on a downward trend, dropping by over 20% and falling below the $3,000 mark. This decline mirrors Bitcoin’s price movements, indicating a broader market bearish sentiment. Despite the introduction of Spot Ethereum Exchange Traded Funds (ETFs), Ethereum has struggled to regain its momentum and reach previous highs.
Cowen predicts a further 50% decline in Ethereum’s price, setting a new target of $1,200 by December. While acknowledging that the projected decline may not be as severe, Cowen remains convinced that some degree of price correction is inevitable. Drawing parallels between Ethereum’s price actions in 2019 and 2024, Cowen suggests that Ethereum might fall below its recent wedge pattern before finding a price bottom.
As of the latest data from CoinMarketCap, Ethereum is currently trading at $2,354, showing a slight uptick of 1.26% in the last 24 hours. Despite the slight increase, Ethereum continues to face selling pressures and market volatility. Recent reports indicate that MetaAlpha, a trading service company, executed a significant transaction of 10,000 ETH tokens valued at $23.45 million, further adding to the selling pressures in the market.
The price predictions and analysis by legendary analyst Benjamin Cowen have sparked a debate within the crypto community. While some investors may be concerned about the potential price decline in Ethereum, others see it as an opportunity for value investing. As the market continues to fluctuate, only time will tell whether Cowen’s predictions will hold true, or if Ethereum will defy expectations and chart a new path in the coming months.