Cryptocurrency expert Benjamin Cowen believes that Ethereum (ETH) is poised for a substantial correction, possibly dipping below the $1,000 mark. Speaking to his extensive YouTube audience in a recent strategy session, Cowen suggests that ETH tends to challenge its significant cycle lows at least twice before entering a new bullish phase.
Reflecting on historical data, Cowen highlights the retests of cycle lows in 2015, 2016, and 2020, emphasizing that a similar occurrence in 2022 is yet to unfold. He anticipates that the breakdown will initially manifest in Ethereum’s Bitcoin pair (ETH/BTC) before affecting ETH/USD, likely within the current year.
According to Cowen, the expected sequence involves ETH/BTC experiencing a breakdown first, followed by a subsequent decline in ETH/USD. He points out a notable trend in ETH/USD, where it typically revisits and tests the integrity of its lows, contrary to simply establishing a low and maintaining it indefinitely.
In Cowen’s projection, Ethereum may retest the integrity of its lows, potentially falling back below the $1,000 threshold. However, he acknowledges that this historical pattern suggests the retest might occur after the breakdown in ETH/BTC, and such a breakdown might not transpire in January. He notes that January tends to be a favorable month for Ethereum, historically.
Despite the potential dip, Cowen suggests that various factors, including narratives surrounding the spot ETF for ETH and halving expectations, might delay the unfolding of these events. As of the latest update, Ethereum is currently trading at $2,268.