Ethereum (ETH) has been facing a period of significant price stagnation, mirroring the sideways movement of Bitcoin (BTC). In light of this, renowned crypto analyst Benjamin Cowen has delved into Ethereum’s price movements and made some intriguing predictions about where the pioneer altcoin might be headed in the coming months.
Unemployment Rates and Price Bottoms
Cowen suggests a potential correlation between Ethereum’s price declines and the rising unemployment rates in the United States. Drawing from historical data, he notes that Ethereum has seen price bottoms coincide with peaks in US unemployment rates in the past. With the current rise in unemployment, Cowen speculates that Ethereum could hit a price bottom in December 2024.
Despite the launch of Spot Ethereum Exchange Traded Funds (ETFs), ETH has struggled to regain momentum and reach previous price highs. Cowen predicts a possible 50% decline in Ethereum’s price in the near future, setting a new target of $1,200 by December. While acknowledging that the projected decline may not be as severe, he remains convinced that some degree of price drop is imminent.
Drawing parallels between Ethereum’s price movements in 2019 and 2024, Cowen suggests that ETH could temporarily dip below a recently formed wedge pattern before finding a price bottom. He believes that after reaching this bottom, Ethereum could be poised for a significant price recovery.
As of the latest data from CoinMarketCap, Ethereum is trading at $2,354, reflecting a slight uptick of 1.26% in the last 24 hours. However, amidst price declines and market volatility, Ethereum has also faced increasing selling pressures. Recently, MetaAlpha executed a major transaction involving a deposit of 10,000 ETH tokens valued at $23.45 million, with a total of $33,589 ETH worth about $77.55 million moved to the Binance crypto exchange in the past four days.
Ethereum’s future trajectory remains uncertain as it navigates through a period of price stagnation and market volatility. While Cowen’s predictions offer some insights into possible price movements, the cryptocurrency market is notoriously unpredictable. Investors and analysts alike will be closely watching Ethereum’s price actions in the coming months to see if Cowen’s predictions come to fruition or if unexpected developments alter the course of the pioneer altcoin.
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