The price of Ethereum (ETH) has been stagnant lately, much like Bitcoin (BTC). A well-known crypto analyst, Benjamin Cowen, has analyzed Ethereum’s price movements and suggested that the pioneer altcoin may hit a bottom in the next three months. Cowen has pointed out a potential correlation between ETH’s price declines and the rising unemployment rates in the United States. Historically, Ethereum has seen a price bottom in December, coinciding with the peak of the US unemployment rate in previous years. With the current rise in unemployment in the US, Cowen predicts a potential price bottom for Ethereum in December 2021.
Over the past few months, Ethereum has been on a downward trend, experiencing a significant crash earlier this year and dropping below $3,000. The cryptocurrency has closely followed Bitcoin’s price declines, turning bearish when the broader market started to show signs of weakness. Despite the introduction of Spot Ethereum Exchange Traded Funds (ETFs), ETH has struggled to regain its previous highs. Cowen forecasts a potential 50% decline for Ethereum in the near future, attributing it to the ongoing trend of price deterioration.
Although Cowen acknowledges that the projected decline may not be as drastic as 50%, he maintains that a noticeable decrease in price is likely. He sets a new target for Ethereum’s price by December, suggesting that it could drop to $1,200 from its current value. Drawing comparisons between Ethereum’s price movements in 2019 and 2021, Cowen speculates that ETH might temporarily dip below its recent wedge pattern before reaching a price bottom. However, the analyst remains optimistic about Ethereum’s long-term prospects, expecting a significant price recovery after hitting the bottom.
Current Market Data and Selling Pressures
According to CoinMarketCap, Ethereum is currently trading at $2,354, showing a slight uptick of 1.26% in the last 24 hours. Despite the marginal price increase, Ethereum has been facing growing selling pressures in the market. Recent reports have highlighted significant transactions involving large amounts of ETH tokens, indicating heightened activity in trading and hedging services. MetaAlpha, a trading company, executed a deposit of 10,000 ETH tokens valued at $23.45 million, following a series of transactions totaling $77.55 million in the past four days to the Binance crypto exchange.
The current state of Ethereum’s price reflects a period of uncertainty and volatility in the broader cryptocurrency market. While the temporary downtrend may persist in the short term, analysts like Benjamin Cowen remain hopeful about Ethereum’s long-term potential. Investors and traders should closely monitor market developments and potential catalysts that could influence Ethereum’s price movements in the coming months.