Analyst Benjamin Cowen believes Ethereum (ETH) may be following a historical pattern that could lead to a significant price drop.
Historical Precedent
In the previous crypto bear market, Ethereum didn’t reach its bottom until it broke below a rising wedge pattern and retested a macro low. Cowen also noted that ETH crashed after the Ethereum/Bitcoin (ETH/BTC) pair broke down.
ETH/BTC Support
With ETH/BTC hovering near support, Cowen believes the next breakdown could trigger a decline in ETH/USD, potentially leading to a price of $1,200.
Similarities to 2019
Cowen explains that the current ETH/BTC breakdown is similar to the one that occurred in July 2019, which preceded a sharp drop in ETH/USD. He suggests that if the pattern repeats, ETH could retest its low from December 2019, which was slightly above $95.
Current Market Conditions
At the time of writing, ETH/BTC is trading above Cowen’s support level, but he believes it could break down soon.
