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Benjamin Cowen, a crypto analyst and trader, has raised concerns about the potential significant price collapse of Ethereum (ETH).
In a recent analysis, Cowen hinted at the possibility of a 60% plunge in the price of ETH, citing the loss of crucial support levels for the ETH/BTC trading pair.
The ETH/BTC trading pair, which compares the value of Ethereum to that of Bitcoin, is widely regarded as an important indicator of market sentiment and relative strength between the two largest cryptocurrencies.
According to Cowen's analysis, the recent loss of important support levels in the ETH/BTC pair could signal further downside for Ethereum's price in the near term.
According to the crypto analyst, on the past two occasions, ETH/BTC broke major support, and the ETH/USD pair fell 60% from its previous local high in three to six months. He mentioned that ETH/BTC has just lost support, and the implications of this development are unknown presently.
The last 2 times that #ETH / #BTC broke support, #ETH / #USD dropped 60%+ from the prior local high over the next 3-6 months.
— Benjamin Cowen (@intocryptoverse) April 16, 2024
Again, #ETH / #BTC just broke support.
Nothing with investing is guaranteed, but please consider all outcomes. pic.twitter.com/RUMYEJwCaM
Cowen's warning comes amid a period of heightened volatility and uncertainty on the cryptocurrency market, with Ethereum experiencing fluctuations in its price and trading volume.
The loss of support for the ETH/BTC pair adds to the uncertainty surrounding the Ethereum price as it fights to maintain the crucial $3,000 level.
ETH was down 3% in the last 24 hours to $3,055 at the time of writing. According to crypto analyst Ali, the next critical support zone for Ethereum is currently between $2,000 and $2,430, where around 9.37 million addresses hold nearly 53 million ETH.
While the prediction of a 60% drop made by Cowen is stark, it is important to realize that predictions are not certainties. While historical trends and potential outcomes might be crucial to consider, past performance might not indicate future results.
In separate news, the Ethereum community is debating a change to the ETH monetary policy in response to proposals aimed at limiting the staking pool's rapid expansion. This discussion was triggered after two Ethereum researchers proposed slowing ETH issuance and thereby reducing staking incentives.