The price of Ethereum (ETH) has been relatively stagnant recently, similar to Bitcoin (BTC). A well-known crypto analyst, Benjamin Cowen, has shared insights on Ethereum’s price movements. He has pointed out a possible correlation between the decline in ETH’s price and the increasing unemployment rates in the United States. According to Cowen, historically, Ethereum has hit a price bottom in December, coinciding with the peak of unemployment in the US in the same month in 2016 and 2019. The current rise in the US unemployment rate suggests a potential price bottom for Ethereum in December 2024.
Over the past few months, Ethereum has been on a downward trend, experiencing a significant drop of over 20% earlier this year, falling below $3,000. The cryptocurrency has mirrored Bitcoin’s price declines, following the overall market sentiment. Despite the introduction of Spot Ethereum Exchange Traded Funds (ETFs), ETH has struggled to regain momentum to reach its previous highs. Cowen predicts a possible 50% decline for Ethereum in the near future, though he acknowledges that the actual drop may not be as severe. He has set a new target price for Ethereum at $1,200 by December.
Drawing parallels between Ethereum’s price movements in 2019 and 2024, Cowen suggested on social media that ETH might momentarily dip below a wedge pattern before reaching a price bottom. He believes that once Ethereum hits this bottom, the cryptocurrency could be poised for a significant recovery in price. Currently, CoinMarketCap data shows Ethereum trading at $2,354, reflecting a minor increase of 1.26% in the last 24 hours. Despite this uptick, Ethereum is facing increased selling pressure amidst market volatility.
In addition to market trends, Ethereum has experienced significant transaction activity. On September 10, it was reported that MetaAlpha, a company specializing in hedging and trading services, executed a substantial transaction with a deposit of 10,000 ETH tokens valued at $23.45 million. Over the past four days, the company has transferred a total of $33,589 ETH, totaling approximately $77.55 million, to the Binance crypto exchange. These large transactions indicate a significant movement of funds within the Ethereum ecosystem, contributing to market dynamics.
The analysis of Ethereum’s price movements, market trends, and transaction activities suggests a complex environment for the cryptocurrency. While predictions of a potential price bottom and significant recovery offer insights into Ethereum’s future, the market remains volatile and influenced by various factors. Investors and traders should carefully monitor developments in the Ethereum ecosystem to make informed decisions regarding their involvement in the market.
