The price of Ethereum (ETH) has been trading sideways, much like Bitcoin (BTC), in recent times. This stagnant trend has led to speculations and predictions from various analysts, including the legendary crypto analyst, Benjamin Cowen. In his analysis, Cowen suggests a potential correlation between Ethereum’s price declines and the rising unemployment rates in the United States (US). This article delves deeper into Cowen’s insights and the possible implications for Ethereum’s future price movements.
Over the past few months, Ethereum has experienced an unusual downward trend, with a significant crash of over 20% earlier this year. The cryptocurrency’s price has even dipped below $3,000, mirroring Bitcoin’s price declines in the bearish market. Despite the launch of Spot Ethereum Exchange Traded Funds (ETFs), Ethereum has failed to gain enough momentum to recover to its previous highs. Cowen predicts a potential 50% decline in Ethereum’s price in the near future, setting a new target of $1,200 by December.
Cowen draws parallels between Ethereum’s price actions in 2019 and 2024, pointing out a potential correlation between the rising US unemployment rates and Ethereum’s price movements. Historically, Ethereum has hit a price bottom in December during peak US unemployment rates, as seen in 2016 and 2019. With the current rise in US unemployment rates, Cowen suggests a continuation of this economic trend, leading to a possible price bottom for Ethereum in December 2024.
Amidst the broader market volatility, Ethereum has faced an increase in selling pressures. Reports indicate that MetaAlpha, a hedging and trading service company, executed a major transaction depositing 10,000 ETH tokens valued at $23.45 million. Over the past four days, the company has moved a total of $33,589 ETH, worth about $77.55 million, to the Binance crypto exchange. This influx of selling pressures adds to the challenges facing Ethereum’s price recovery in the current market conditions.
Ethereum’s price movements continue to be influenced by various factors, including unemployment rates, market sentiments, and selling pressures. The predictions and analyses offered by experts like Benjamin Cowen provide valuable insights into the potential price trajectories of the pioneer altcoin. As investors and market participants navigate the volatile crypto market, staying informed about these factors is crucial for making informed decisions regarding Ethereum and other cryptocurrencies.
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