As a seasoned crypto investor who has been closely following the market trends, I share Benjamin Cowen’s concerns regarding the recent downtrend in the Ethereum/Bitcoin (ETH/BTC) pair. His insights into the complex relationship between Ethereum and Bitcoin pricing and the potential for further downside risk are valuable.
As a crypto investor, I’ve been closely following the recent turbulence in the market, particularly the downtrend in the Ethereum/Bitcoin (ETH/BTC) pair. One insightful voice in this space is Benjamin Cowen, founder and CEO of Into The Cryptoverse. He’s shared his thoughts on the intricate connection between Ethereum and Bitcoin pricing and the potential risks for further downturn.
Based on Benjamin Cowen’s analysis, the ETH–BTC exchange rate is presently dropping, and history shows that when this pair declines, the Ethereum-USD pair tends to experience a significant decrease, approximately 70%. It’s essential for the crypto community to be aware of this potential downturn, considering the long-standing anticipation for an altcoin rally that has persisted for the past 2.5 years.
ETH/BTC Pair Rejected By The Bull Market Band
Cowen has confirmed that the ETH/BTC ratio is currently being pushed back by the resistance level set by the bull market, a development he had anticipated a few days ago due to price inflation. “Based on weekly closures,” he explained, “I anticipate this ratio (ETH/BTC) will be repelled by the bull market’s resistance band, at least in the region of $0.053-$0.054.” He added that the recent surge in price seems to echo the last cycle of interest rate reductions preceding the summer collapse.
After the debut of Bitcoin Spot Exchange-Traded Funds (ETFs), Cowen’s analysis indicated that Ethereum to Bitcoin (ETH/BTC) experienced a significant surge. The analyst believes this rally might mirror the pattern of the past bull market, potentially leading to fresh lows.
Cowen noted that there has been a clear downward trend in the macro economy since November 2021, which was further highlighted by the merger of ETH and BTC. Yet, it’s important to mention that this downtrend did not result in a sudden market crash.
During the price decline from 0.085 to 0.048, investors opted to keep their funds in ETH rather than BTC due to ETH’s formation of several lower highs. This trend gave the perception that ETH was more resilient and performing better compared to BTC.
Before the Bitcoin Halving, Cowen anticipated that Ethereum’s price relative to Bitcoin (ETH/BTC) would be pushed back by the bull market support band during weekly closures, around $0.053 to $0.054. If there is a rebound after the Halving, this price behavior could mirror Bitcoin’s response to its spot ETF launch. However, regardless of what happens next, the expert remains certain that Ethereum’s price in terms of Bitcoin will fall within the range of $0.03 and $0.04 by summer.
Heightened Divergence Between Ethereum And Bitcoin
As a dedicated researcher studying the dynamic world of cryptocurrencies, I’ve observed that Ethereum and Bitcoin, being the two most prominent players, have garnered significant attention. However, recent insights from on-chain analytics firm Glassnode reveal an intriguing shift in their performance metrics.
Based on the company’s analysis, Ethereum and Bitcoin have been displaying significantly different trends during the 2023-2024 market cycle. The underperformance of Ethereum can be attributed to a less vibrant trend in investors shifting capital between assets. This disparity becomes more apparent when contrasted with previous cycles and record highs.
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2024-05-08 19:16