Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Ethereum vs. Bitcoin: Is 60% ETH Price Collapse on Horizon?

Published 04/16/2024, 11:42 AM
Updated 04/16/2024, 03:00 PM
Ethereum vs. Bitcoin: Is 60% ETH Price Collapse on Horizon?

U.Today - Benjamin Cowen, a crypto analyst and trader, has raised concerns about the potential significant price collapse of Ethereum (ETH).

In a recent analysis, Cowen hinted at the possibility of a 60% plunge in the price of ETH, citing the loss of crucial support levels for the ETH/BTC trading pair.

The ETH/BTC trading pair, which compares the value of Ethereum to that of Bitcoin, is widely regarded as an important indicator of market sentiment and relative strength between the two largest cryptocurrencies.

According to Cowen's analysis, the recent loss of important support levels in the ETH/BTC pair could signal further downside for Ethereum's price in the near term.

According to the crypto analyst, on the past two occasions, ETH/BTC broke major support, and the ETH/USD pair fell 60% from its previous local high in three to six months. He mentioned that ETH/BTC has just lost support, and the implications of this development are unknown presently.

Cowen's warning comes amid a period of heightened volatility and uncertainty on the cryptocurrency market, with Ethereum experiencing fluctuations in its price and trading volume.

The loss of support for the ETH/BTC pair adds to the uncertainty surrounding the Ethereum price as it fights to maintain the crucial $3,000 level.

ETH was down 3% in the last 24 hours to $3,055 at the time of writing. According to crypto analyst Ali, the next critical support zone for Ethereum is currently between $2,000 and $2,430, where around 9.37 million addresses hold nearly 53 million ETH.

While the prediction of a 60% drop made by Cowen is stark, it is important to realize that predictions are not certainties. While historical trends and potential outcomes might be crucial to consider, past performance might not indicate future results.

In separate news, the Ethereum community is debating a change to the ETH monetary policy in response to proposals aimed at limiting the staking pool's rapid expansion. This discussion was triggered after two Ethereum researchers proposed slowing ETH issuance and thereby reducing staking incentives.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.