In the midst of a tumultuous period for the crypto market, prominent figure and CEO of Into The Cryptoverse Benjamin Cowen has stepped forward to share his thoughts on the recent downtrend in the Ethereum/Bitcoin (ETH/BTC) pair. Cowen’s analysis delves into the intricate relationship between the pricing of Ethereum and Bitcoin, as well as the potential for further downside risk.
Benjamin Cowen suggests that the ETH/BTC pair is currently experiencing a downward trend, pointing out that in the past, when the pair declined, ETHUSD plummeted by approximately 70%. Despite the community’s hopeful anticipation of an Altcoin season for the past 2.5 years, Cowen feels it is necessary to caution that there is still a possibility of a downward movement.
Cowen notes that ETH/BTC is currently facing rejection by the bull market support band, a trend he had previously predicted following a price surge. He anticipates that the pair will be rejected by the support band, especially when looking at weekly closes within the range of $0.053-$0.054. The recent price pump seems to mimic the pattern of rate cuts in the previous cycle leading up to summer capitulation.
Following the introduction of Bitcoin Spot Exchange-Traded Funds (ETFs), Cowen observed a sharp rally in the ETH/BTC pair. He suggests that this rally could be reminiscent of the trend seen in the previous bull cycle, which ultimately led to new lows in the market. Despite the merger of the ETH/BTC pair and a noticeable macro downtrend since November 2021, the market did not witness a sudden drop. Investors seemed to favor holding onto ETH over BTC, maintaining their positions from 0.085 to 0.048 due to multiple lower highs.
Before the Bitcoin Halving, Cowen had predicted that the bull market support band would reject the ETH/BTC pair, particularly when examining weekly closes in the range of $0.053-$0.054. He remains confident that regardless of the market’s direction, ETH/BTC will likely hit between $0.03 and $0.04 by the summer. As two of the most prominent cryptocurrency assets, Ethereum and Bitcoin continue to attract significant attention from investors.
On-chain analytics firm Glassnode has highlighted a noticeable shift in performance between Ethereum and Bitcoin. The firm suggests that the performance of these two digital assets has been diverging in the current 2023-2024 cycle. This is likely due to the weaker trend in capital rotation, particularly in ETH price, as compared to previous cycles and all-time highs.
Benjamin Cowen’s insights provide valuable observations on the current state of the crypto market, specifically focusing on the ETH/BTC pair. As the market remains in a state of flux, it is essential for investors to conduct thorough research and exercise caution before making any investment decisions. The volatility of the crypto market necessitates a careful approach to risk management and decision-making.
