Crypto analyst Benjamin Cowen believes that Ethereum (ETH) is about to collapse against Bitcoin (BTC).
In a new strategy session, Cowen tells his 789,000 YouTube subscribers that the ETH/BTC ratio is likely repeating a historical pattern and might soon lose a key support level.
“I’m not saying it can’t ever bounce, and if it does bounce the bull market support band is what you would look towards and that’s currently at around .055 BTC. So I would keep an eye on that in case there are any bounces.
But I still think that there’s a good chance that we are just emulating what happened over here [in December 2017] and that we are about to enter this phase of the cycle [similar to 2019-2020] where support finally breaks [at the 0.049 BTC level], it comes down into these levels over here, finds some type of a bottom [at around 0.037 BTC], goes sideways for a while and then maybe by the end of the year starts trending back up [to 0.049 BTC].”
ETH/BTC is trading for 0.049 BTC ($2,298) at time of writing.
Cowen acknowledges that the ETH/BTC pair has both lower highs and higher lows in the weekly time frame, which makes it difficult to predict the trading pair as bullish or bearish.
“How best to explain Ether/Bitcoin higher lows is perhaps on some type of logarithmic regression curve. And it is important to point out the higher lows…
But one concerning aspect are these lower highs. We can look at the higher lows, and a lot of people point to that…
I look at these lower highs and think, where’s this thing ultimately heading? It’s putting in lower highs, but it’s also putting in higher lows. The truth is I don’t know what the ultimate outcome of this is. You could make a case, either way.”
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