Crypto analyst Benjamin Cowen is predicting a potential downturn for Ethereum (ETH) in the last quarter of 2023. He’s drawing parallels to a similar pattern seen in 2016, where ETH experienced a dip in Q4.
Ethereum’s Potential Q4 Dip
Cowen, who has a large following on social media, says that if the 2016 pattern repeats, ETH could see a decline in the final three months of the year. However, he also suggests that this could be followed by strong gains in the first half of 2025.
“If ETH keeps following the 2016 pattern, we might see a red Q4, followed by a green first half of 2025,” he explained.
Bitcoin’s Rally Hinges on Tether Dominance
Cowen also shared his thoughts on Bitcoin (BTC), suggesting that a break below a trend line in Tether Dominance (USDT.D) could trigger a rally for the leading cryptocurrency. He believes that a declining percentage of Tether’s market cap compared to other cryptocurrencies historically coincides with Bitcoin uptrends.
“This trend line needs to break before any real future rally can begin,” Cowen stated.
Crypto Market Might Not Soar Until Next Year
Finally, Cowen analyzed the logarithmic regression band of the crypto market cap, which aims to track the fair value of the asset class. Based on his analysis, he believes that the crypto market might not reach overvalued territory until early next year.
“We might not see the market go overvalued until potentially next year,” he said. “That would be in line with what we’ve seen in previous cycles.”
Disclaimer: This information is for general knowledge and should not be considered investment advice. Always do your own research before making any investment decisions. /p>
