The post Ethereum Faces Potential Drop To $1,200 By December, Says Analyst Benjamin Cowen appeared on BitcoinEthereumNews.com.

According to Benjamin Cowen, CEO and Founder of ITC Crypto, Ethereum could be heading towards a significant price correction by the end of 2024. Cowen notes that the wedge pattern Ethereum has formed this cycle features higher lows, nearly 10x those of the wedge formed in 2019. However, the similarities to Ethereum’s 2019 price action suggest a possible bearish scenario ahead. The wedge that #ETH formed this cycle had higher lows that are ~10x of the 2019 wedge. In 2019, #ETH fell back into its wedge right before the 1st rate cut, just like 2024. After the first rate cut in 2019, ETH fell below its wedge, and then #ETH / #BTC finally bottomed. pic.twitter.com/lAcJi8TBHX — Benjamin Cowen (@intocryptoverse) September 10, 2024 In 2019, right before the first interest rate cut, Ethereum fell back into its wedge pattern. After the cut, Ethereum dropped below the wedge, which ultimately led to a bottoming out of the ETH/BTC pair. Cowen believes history could repeat itself, with Ethereum potentially declining to $1,200 by December 2024. Historical Ethereum And Bitcoin Price Date And Movement To Monitor  He points out that in both 2016 and 2019, Ethereum experienced significant breakdowns, with ETH/BTC falling sharply and ETH/USD seeing losses of up to 70%. Based on current risk levels, a similar 70% drop would put Ethereum around $1,208, a level Cowen considers a “soft landing.” Following this potential bottom, he expects a recovery in the first half of 2025. Adding to the bearish outlook is the recent outflow of funds from Ethereum-based investment products. Ethereum spot ETFs have recorded a total net outflow of $5.2 million, continuing a five-day trend of withdrawals. Grayscale’s Ethereum Trust (ETHE) also saw significant outflows, with $22.6 million leaving the fund. On September 9, the Bitcoin spot ETF had a total net…

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Filed under: News - @ September 11, 2024 11:25 am