Ethereum has been making some interesting moves in the market lately, leaving traders uncertain about what the future holds. Crypto analyst Benjamin Cowen has been closely monitoring key levels in the ETH/BTC and ETH/USD pairs to try and decipher the signals.
Starting with Ethereum’s performance against Bitcoin (ETH/BTC), the pair recently dropped below the 0.04 mark, indicating a potential shift in market sentiment. Historically, when ETH/BTC breaks down, it tends to bottom out within 8-10 weeks. The recent low in ETH/BTC aligns with this timeframe, hinting that a bottom may be in sight.
However, Cowen warns of conflicting signals in the ETH/BTC pair. He notes that in the past, ETH/BTC bottomed out when the Federal Reserve transitioned from quantitative tightening to quantitative easing, a move that has not occurred yet. This raises the possibility of a temporary bounce in ETH/BTC followed by a revisit to lower levels before a sustained recovery.
On the other hand, Cowen points out that ETH/USD has been mirroring patterns from 2016 and 2019. In both years, the first quarter was positive, followed by a dip in April and a recovery in May. Similarly, 2024 saw a sluggish summer, with June, July, and August being red months, resembling the patterns of previous years. If this trend continues, Ethereum could see a positive end to September.
As for Ethereum’s price prediction, it is currently trading at $2,673 after a 10% rally over the past ten days. Traders should keep an eye on the $2,702 resistance level, as a struggle to break above it could result in a pullback. However, with October historically being a strong month for Ethereum, any dip could present a buying opportunity, potentially leading to a retest of the $2,820 level.
The future of Ethereum’s price remains uncertain, with various factors at play. Traders will have to wait and see how the market unfolds in the coming weeks to get a clearer picture of where Ethereum is headed.