ETH/BTC Pair Faces Downward Trend
Crypto expert Benjamin Cowen warns that the Ethereum/Bitcoin (ETH/BTC) pair is currently in a downtrend. He notes that in the past, similar declines have led to a 70% drop in ETHUSD. Cowen believes it’s crucial to caution the community about the potential for further downside risk, especially since the crypto community has been anticipating an Altcoin season.
Bull Market Band Rejection
Cowen confirms that ETH/BTC is being rejected by the bull market support band, which he predicted due to a recent price pump. He expects this rejection to continue at least when looking at weekly closes. He compares the current pump to the previous bull cycle, which led to new lows.
Macro Downtrend and ETH Holding
Cowen highlights the macro downtrend that has persisted since November 2021, particularly after the ETH/BTC merger. However, he notes that the market has not experienced a sudden drop. Instead, investors have held ETH over BTC, creating the illusion of stability.
ETH/BTC Forecast
Cowen predicts that ETH/BTC will reach between $0.03 and $0.04 by this summer, regardless of any rebounds.
Divergence Between Ethereum and Bitcoin
Glassnode, an on-chain analytics firm, has observed a growing divergence in performance between Ethereum and Bitcoin. Ethereum has underperformed compared to previous cycles and all-time highs, indicating a weaker trend in capital rotation.
