Prominent crypto analyst Benjamin Cowen has recently suggested that a single event could trigger a significant drop in Ethereum’s (ETH) value relative to Bitcoin (BTC).
According to a report by The Daily Hodl published earlier today, in a recent discussion with Crypto Banter host Ran Neuner, Cowen speculated that the ETH/BTC pair could experience a drop of over 50% from its current value of 0.063 BTC, equivalent to $1,828.
Cowen’s prediction is based on his observation that the ETH/BTC pair appears to form a bearish double-top pattern on the monthly chart. This pattern suggests that investors will likely trade their ETH for BTC during any rally. Cowen described the current situation as a “massive distribution phase,” similar to patterns observed in previous cycles.
Cowen notes that historically the ETH/BTC pair has shown a tendency to decline from June through December. Cowen anticipates a potential drop to as low as 0.03 BTC ($871):
“So what I would think is going to happen is that Ether/Bitcoin could plummet to around that 0.03 (BTC) to 0.04 (BTC) level and once the Ethereum/Bitcoin valuation gets there, I think that it could mark the end of the altcoin reckoning.“
According to Cowen, the catalyst for this significant ETH/BTC decline could be a retracement in the stock market. He drew parallels with the late 2017 scenario when the ETH/BTC pair dropped to .022 BTC. A second drop to this level in 2018 marked the end of many altcoins’ reckoning. Cowen suggests that a similar pattern could be unfolding now, with a secondary drop to the level of 0.049 BTC potentially on the horizon.
However, Cowen also cautioned that even after reaching this level, the ETH/BTC pair could experience further drops before finding a bottom. He believes that a potential seasonal correction in the S&P 500 could be the trigger for this scenario.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.