A widely followed crypto analyst looks at historical price action to build a capitulation scenario for the Ethereum vs. Bitcoin (ETH/BTC) pair.
In a new video update, crypto strategist Benjamin Cowen tells According to its 803,000 YouTube subscribers, ETH/BTC could be in trouble if the Federal Reserve cuts rates in September and the pair follows the same pattern as during the 2016 market cycle.
“What’s really interesting about 2016 is when you look at it [the chart]it swept [the lows at 0.015 BTC] in June, while this cycle it is [swept the lows at 0.045 BTC] in May, about a month earlier.”
Cowen goes on to say that if ETH/BTC follows in the footsteps of a 2016-style capitulation, the pair could first rise to its immediate resistance at 0.056 BTC in August, before reconsidering support to 0.045 BTC in September if the Fed would cut interest rates that month. .
The analyst also predicts that a rate cut could trigger a collapse in the pair and send ETH/BTC to its cycle lows by the end of the year.
In December 2016, ETH/BTC fell to a low of 0.00733 BTC, before rising to record highs of 0.156 BTC a year later
At the time of writing, ETH/BTC is trading at 0.0519 BTC worth $3,524.
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