Ethereum Plummets Against Bitcoin, Analyst Predicts Further Drop

Amidst concerns over tightening monetary policies, cryptocurrency analyst Benjamin Cowen predicts a potential 38% decline in the ETH/BTC trading pair. The value of Ethereum relative to Bitcoin could bottom out this summer, due to a breakout below a key support level. If the Federal Reserve eases its policies, a potential recovery for ETH/BTC could emerge; however, Ethereum's value in US Dollars may continue to face slight declines.

Ethereum Faces Downturn Against Bitcoin, Analyst Warns

Renowned cryptocurrency analyst Benjamin Cowen has issued a pessimistic forecast for the Ethereum (ETH) to Bitcoin (BTC) trading pair, predicting a further decline in the coming months. This bearish outlook stems from the belief that the ETH/BTC ratio will reach its lowest point this summer, potentially marking a 38% drop in the relative value of Ethereum to Bitcoin.

ETH/BTC's Weakness Unleashed

Currently, the ETH/BTC ratio stands at 0.04869 BTC, or $3,070, having broken below its crucial horizontal pivot of 0.05, which it has maintained since May 6, 2021. This represents a lower low compared to mid-June 2022, when ETH/BTC tested the same level and rebounded. However, despite the subsequent recovery, it has remained below the descending resistance line since September 10, 2022.

The relentless downward pressure has now breached the horizontal level, indicating a potential for further decline. Cowen warns that the next significant support point for the ETH/BTC pair lies at the horizontal support zone starting at 0.03, suggesting a potential 38% decrease.

Mid-June Bottom Possible, Dependent on Fed

Cowen speculates that the earliest ETH/BTC could bottom is mid-June, but this is contingent upon the fiscal decisions of the United States Federal Reserve. If the Fed eases its monetary policies, it could trigger a bullish phase for the ETH/BTC pair.

ETH Price Analysis

Ethereum's recent price action has been marked by volatility and downward pressure. On March 11, it surpassed the $4,000 threshold, reaching a peak of approximately $4,100, but by March 20, it had declined to $3,062. A subsequent rebound pushed the price to $3,730 by April 8, but it proved to be reactionary, sending ETH lower than before.

On April 13, Ethereum's price plunged to $2,840, reaching the 0.786 Fibonacci extension level. Wave analysis and the daily chart RSI suggest a potential further decline to $2,750, completing the ABC correction as wave four of a five-wave impulse that began in mid-October 2023.

Consolidation and Sideways Movement

Cowen's projection for the ETH/BTC pair is supported by the broader outlook for ETH. He does not anticipate a new all-time high for ETH in its next upward turn, but rather a prolonged consolidation. This could result in ETH maintaining its sideways movement while Bitcoin's price increases, effectively losing value to BTC and driving down the ETH/BTC trading pair.

Disclaimer

It is crucial to note that this article does not constitute financial or investment advice. The information provided is solely the opinion of the author and should not be construed as trading or investment recommendations. Cryptocurrencies are highly volatile and subject to unpredictable movements. Investors, traders, and other users should conduct thorough research and be aware of all relevant regulations before making any investment decisions.