As a seasoned analyst with over two decades of experience in financial markets under my belt, I have seen enough cycles to recognize a potential pattern when I see one. The current downtrend in Ethereum (ETH) has been reminiscent of its price movements in 2016 and 2019, both of which saw a price bottom in December.
Similar to Bitcoin (BTC), the value of Ethereum (ETH) has been largely stagnant recently. This prolonged period of low activity has led a renowned cryptocurrency analyst to provide some analysis on Ethereum’s price fluctuations, suggesting that in the upcoming three months, the original altcoin may reach its lowest point.
Ethereum To Hit Price Bottom By December
In a recent YouTube post, Benjamin Cowen, known for his work at ITC Crypto and as a well-regarded crypto analyst, delves into Ethereum’s fluctuating prices. He points out a possible relationship between Ethereum’s price drops and the increasing unemployment rates in the United States (US).
Historically, the U.S. has seen its highest unemployment rates in the month of December. Interestingly, the cryptocurrency Ethereum has also hit its lowest prices during this same month in both 2016 and 2019. If current trends continue, Cowen predicts that we might see a similar peak in unemployment rates in December 2024, which could possibly align with another price bottom for Ethereum.
Over the last several months, Ethereum’s price has shown an unexpected drop, falling more than 20% early in the year and dipping under $3,000. This digital currency has followed Bitcoin’s price decreases closely, quickly turning red as the overall market became bearish.
Although Spot Ethereum Exchange Traded Funds (ETFs) have been introduced, Ethereum’s value hasn’t picked up enough speed to reach its old record highs. Given Ethereum’s downward trend in the crypto market, Cowen anticipates a potential 50% drop in Ethereum’s price in the near future.
Despite acknowledging that the predicted drop might not be as drastic as 50%, the analyst is still confident that some level of decrease, even if slight, is imminent. Consequently, Cowen has revised their estimate for Ethereum’s price by December, suggesting that the leading cryptocurrency could experience a decline to $1,200 from its current value.
By comparing Ethereum’s price movements in 2019 and a potential scenario for 2024, Cowen posited on their X (previously Twitter) account that ETH may dip below its recently established wedge pattern before locating a bottom price point. The analyst anticipates that after Ethereum experiences this price drop, it could be set for a substantial price surge in the future.
Currently, according to CoinMarketCap’s latest report, Ethereum’s value is being exchanged at approximately $2,354, showing a minor increase of around 1.26% over the past day.
Selling Pressures Increase For ETH
Despite general decreases in prices and market instability, Ethereum has been facing increased selling demands as well. On September 10th, it was reported by Lookonchain that MetaAlpha, a firm specializing in hedging and trading services, carried out another significant transaction involving the deposit of 10,000 ETH tokens worth approximately $23.45 million.
For the last four days, our company has transferred a grand total of 33,589 Ether (ETH), approximately equivalent to $77.55 million, to the Binance cryptocurrency exchange. Simultaneously, the Ethereum Foundation – a non-profit organization dedicated to the Ethereum ecosystem – has just sold an additional 100 ETH tokens. This latest sale brings their total ETH sales since January to a staggering 2,616 Ether tokens.
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2024-09-10 19:34