An analyst who accurately called the latest crypto correction is issuing a dire warning to Ethereum (ETH) holders.
Crypto strategist Benjamin Cowen tells his 845,000 followers on the social media platform
According to Cowen, a similar script appears to be playing out after Ethereum recently collapsed against Bitcoin (ETH/BTC).
“This idea for ETH/U.S. dollar is starting to look more believable.”
In May this year, Cowen predicted that ETH would lose 70% of its value and fall almost $1,150.
“The last two times ETH/BTC Broken, ETH/U.S. dollar subsequently declined by approximately 70%.
In a world where everyone has been preaching the season for the past 2.5 years BTC dominance uptrend, I thought I would remind people that there is still downside risk.
Cowen goes on to say that Ethereum seems to specifically reflect the 2019 cycle and that the deep pullback could happen after the Fed announces a rate cut.
“ETH is back on this trend line.
If it follows 2019, it will hold these levels for a few weeks and then collapse again after the Fed cuts rates.
No guarantees, just follow the most useful analogue that has been the best guide so far this year.
There is a good chance that the Fed will cut interest rates next month got up up to 100% after this week’s crypto and stock market correction, according to CME’s FedWatch tool.
Last month, Cowen predicted that Bitcoin would witness a deep corrective move, noting that BTC appeared to be mimicking the 2019 cycle. He also predicted that altcoins would also capitulate against the US dollar.
At the time of writing, Ethereum is trading at $2,456.
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Generated image: Midjourney