Ethereum Crash Alert: Analyst Predicts Potential Drop Below $1,200

Crypto analyst Benjamin Cowen has shared a cautious outlook for Ethereum (ETH), highlighting that the cryptocurrency is currently trading around 40% below its March 2024 peak.

Cowen indicated that Ethereum might decline further by at least 5% relative to Bitcoin (BTC).

When analyzing the ETH/BTC chart, Cowen noted that Ethereum is likely to find a bottom between now and the end of the year. While it’s possible that Ethereum has already bottomed out, he believes there is still a chance it could drop below 0.04 BTC.

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At present, Ethereum is valued at 0.04229 BTC. In terms of the US dollar, ETH is trading at $2,399, which is about 48% lower than its March 11th high of around $4,100.

Cowen also pointed out that Ethereum’s current price action resembles previous patterns. He explained that the ETH/BTC pair has experienced breakdowns three times—in 2016, 2019, and now in 2024.

During those past breakdowns, Ethereum’s USD value saw significant drops. In both 2016 and 2019, after ETH/BTC broke down, ETH/USD fell by around 70%. Before the pandemic, it dropped by 68%, and in 2016, the decline was 70%. If history repeats itself, a similar drop in 2024 could bring ETH closer to $1,200.