- Benjamin Cowen predicts Ethereum’s decline against Bitcoin.
- Trend analysis of the ETH/BTC pair suggests a possible decline.
- The volatility paradox of ETH/BTC complicates forecasts.
Renowned cryptocurrency analyst Benjamin Cowen has shared his thoughts on the immediate future of Ethereum (ETH) in relation to Bitcoin (BTC), predicting a possible decline in its relative value. In a recent strategy session aimed at his over 789,000 YouTube subscribers, Cowen discussed the current dynamics between these two leading cryptocurrencies.
Possible decline in ETH/BTC ratio
Cowen says the ETH/BTC pair may follow a historical pattern that suggests a loss of a key support level. According to their analysis, Ethereum may be about to enter a phase similar to the cycle it experienced between 2019 and 2020. In this scenario, support at the 0.049 BTC level is projected to be broken, causing Ethereum to fall to around 0.037 BTC. After this, Ethereum is expected to experience a sideways movement before climbing again at the end of the year with the goal of recapturing the 0.049 BTC level.
Complex analysis of the ETH/BTC pair
Cowen’s analysis highlights the complexity in predicting the future behavior of ETH/BTC due to the presence of lower highs and higher lows on the weekly time frame. This mixed pattern makes it difficult to classify the pair’s trend as bullish or bearish. Cowen suggests that the best way to understand Ethereum’s rising bottom line against Bitcoin may be through a logarithmic regression curve.
Despite acknowledging the importance of high lows, Cowen is concerned about low highs. This trend for Ethereum to record lower highs, even though it is also marking higher lows, leaves a margin of uncertainty about the ultimate direction. Cowen admits that, given this scenario, both bullish and bearish predictions are debatable.
Finally, Benjamin Cowen offers a cautious outlook on Ethereum compared to Bitcoin based on historical patterns and current market dynamics. However, it highlights the uncertainty inherent in the technical analysis of the ETH/BTC pair, highlighting the volatile and often unpredictable nature of the cryptocurrency market.