A closely followed crypto analyst says there is a good chance that Ethereum (ETH) may enter a final capitulation in the coming weeks.
In a new strategy session, crypto trader Benjamin Cowen tells his 819,000 YouTube subscribers that based on a pattern of Ethereum bottoming out during the fourth quarter, he’s anticipating ETH drops to its logarithmic trendline, potentially as low as $1,000.
“When I look at the cycle, I see ETH at $2,400 and I just think that there is a really high probability that within a couple of months, probably in less than two months, we will look back at this and see that Ethereum finally went home and it took until Q4 of 2024 to do so…
In 2016, you can see that Ethereum finally entered the lower logarithmic correction trendline in basically early to mid-November. In 2019, it entered it in August but then it got back above it and then didn’t really durably stay in it until almost late September and October.
This time, it tagged it back in August kind of like it did in 2019. If you look at 2019, it went down in August, you can see it went down, it tagged it in August, got a little bit of a rally and I think it’s about to get that drop.”
Cowen says that similar to 2019, Ethereum’s rallies this year don’t have the strength to power a move to new all-time highs.
“When you look at it this time, what do you notice? It’s not getting to the 20-week SMA (simple moving average) just like it wasn’t in 2019. Every single move up is just a rejection by the 21-week EMA (exponential moving average). It doesn’t even have the strength to get to the 20-week SMA, and this is exactly what happened in 2019 just before Ethereum capitulated in mid-November, and so I don’t apologize for my views.”
Ethereum is trading for $2,446 at time of writing, a 3% decrease on the day.
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