Renowned market analyst Benjamin Cowen has offered his expert thoughts on the future trajectories of Ethereum (ETH) and Bitcoin (BTC). While he does not foresee an immediate drastic drop in prices, he cautions investors about the potential for further market downturns before a complete recovery takes place. Let’s delve deeper into his analysis.
ETH/BTC: Approaching the Bottom?
According to Cowen, the ETH/BTC trading pair might be nearing a crucial bottom. He draws parallels to historical trends, particularly highlighting Ethereum’s impressive rallies post-bottoms in the past. For instance, in 2019, Ethereum witnessed a remarkable 33% surge after reaching a low against Bitcoin.
Current Market Dynamics
Currently, Ethereum has already seen a 26-27% increase from its recent low against Bitcoin. Cowen emphasizes that if the ETH/BTC pair maintains its position above the 50-day moving average, it could potentially pave the way for further upward momentum.
Crucial Resistance Levels
The next significant resistance point for the ETH/BTC pair lies in the 0.042–0.043 range, closely associated with the Bull Market Support Band. A successful breach above this level could indicate a bullish signal, potentially leading to further gains for Ethereum.
Bitcoin Dominance and Its Influence on Ethereum
Bitcoin’s dominance often increases towards the end of the halving year, particularly in the fourth quarter. However, this year has seen unpredictable behavior in Bitcoin’s dominance. Cowen highlights this unusual trend and its potential implications.
Looking at Bitcoin Dominance in 2024
Although Bitcoin dominance traditionally rises in the latter part of the year, 2024 has shown more volatility than usual. Cowen suggests that if Bitcoin dominance escalates again in the fourth quarter, it might trigger a sell-off among altcoins, including Ethereum.
ETH/BTC Price Movements
Despite potential drops in other Bitcoin pairs, Cowen believes that ETH/BTC may not experience a significant decline or might maintain stability. This could offer a degree of resilience to Ethereum even amidst broader market fluctuations.
The Role of Bitcoin in Ethereum’s Price Movements
Cowen asserts that Ethereum’s USD value is likely to be heavily influenced by Bitcoin’s price trajectory. A drop in Bitcoin’s price below the critical $70,000 mark could signal market weakness, potentially affecting Ethereum’s price.
Key Support Levels for ETH/USD
If Bitcoin falls below $70,000, it could pose further downside risks for Ethereum. However, Cowen advises investors to consider the cyclical patterns observed in past trends, as long as Bitcoin stays above this pivotal level.
Are We Nearing the Bottom for ETH/BTC?
Cowen speculates that we might be approaching the bottom for the ETH/BTC pair, especially with Bitcoin dominance currently at a significant 60%. Despite this, he acknowledges the inherent uncertainties of the market.
Potential for a Lower Low
While Cowen is optimistic about the current levels being the bottom, he remains cautious, recognizing that ETH/BTC could dip further before a sustainable recovery begins.
Future Projections
Looking ahead, Cowen identifies $0.03465 as a potential bottom for the ETH/BTC pair. He anticipates that by the end of 2024, we might see clearer confirmation of this bottom, guiding investors on the future path for Ethereum and Bitcoin.
