This Crypto Analyst Predicts Ethereum Prices Will Drop Before Moving

Ethereum, the second largest crypto asset by market cap after Bitcoin. (Photo; Doc. Unsplash)

JAKARTA - Crypto expert Benjamin Cowen expressed his views on crypto number two based on his market capitalization, Ethereum (ETH). Cowen predicts ETH will still experience a decline before finally returning to the highest level ever achieved.

In his latest video on YouTube, Cowen reinforces his opinion by stating that ETH needs to "come home" first, referring to the logarithmic regression trend line that reflects asset value fairly.

In his explanation to his 786,000 customers, Cowen explained that throughout history, ETH had returned to this trend line before experiencing a spike.

Cowen revealed that logarithmic regression bands are used to map asset values based on "non-bubble data" or data that are not affected by price bubbles. He highlighted that the center of the band is currently at 934 US dollars (Rp 14.2 million) and the bottom is at 644 US dollars (Rp 9.8 million).

The expert also noted that in the last cycle (in 2020), Ethereum even fell 33% below the regression band. Therefore, according to him, the range of accumulation of interest for Ethereum lies between 400 US dollars (Rp 6.1 million) and 600 US dollars (Rp 9.1 million).

Cowen indicated the possibility that ETH would close this year at a lower price than its initial value. This follows a 2019 pattern, when ETH started at a price of 1,200 US dollars (Rp 18.3 million).

At the time of writing, Ethereum is trading at a price of IDR 25.5 million. ETH's price performance has increased 2.0% in the last 24 hours according to Coingecko data.