Crypto Analyst Calls Ethereum Potentially Entering Bearish Phase, This Is According To Benjamin Cowen
JAKARTA Ethereum (ETH), one of the second-largest crypto assets after Bitcoin (BTC) by market cap, is said to have the potential to enter a bearish phase. This was conveyed by a crypto analyst, Benjamin Cowen. He warned that Ethereum (ETH) could enter the bearish phase in the last three months of this year.
Cowen, who has more than 861,500 followers on social media platform X, pointed out that ETH price movements may be repeating a pattern that occurred in 2016, where prices fell significantly in the fourth quarter. This raises concerns among investors, although the potential for an increase in ETH prices will still exist in the first half of next year.
The analyst explained that this pattern similar to 2016 indicates a potential decline in the last quarter, but could turn into a major increase in early 2025.
"With ETH rising in September, the 2016 pattern is still ongoing. If this pattern continues, Q4 will be red, followed by H1 2025 which is green. Q4 2019 is also red for ETH, but October is slightly green. The trend can change, but it should be considered until there is a deviation," Cowen said.
In addition, Cowen also highlighted the importance of Tether dominance (USDT) in the crypto market. According to him, if Tether's dominance penetrates below the trend line on weekly timeframe, this could signal that Bitcoin (BTC) will start rallying. The decline in Tether dominance usually suggests that market participants are starting to use their stablecoins to buy other crypto assets.
SEE ALSO:
"USDT dominance has reached its long-term trend line since March 14, 2024, which is the local peak for BTC. This trend must be cut off before the actual rally can start," Cowen said.
For additional information, Cowen also shared an analysis of the logarithmic regression of crypto market capitalization, which serves to track the reasonable value of an asset class. Based on historical precedents, the crypto market may not have passed a fair value until early next year, reflecting the pattern of the previous cycle in which a significant price spike occurred in the year after the Bitcoin halving.
At the time of writing, the price of ETH is trading at the level of IDR 37 million with an increase of 3.3% in the last 24 hours based on data from CoinGecko on October 4, 2024.