Amid turbulence surrounding the crypto market, standard founder and Chief Government Officer (CEO) of Into The Cryptoverse Benjamin Cowen has taken the highlight to shed his insights on the latest downtrend noticed within the Ethereum/Bitcoin (ETH/BTC) pair. Cowen’s views look at the advanced relationship between Ethereum and Bitcoin pricing and the potential for additional draw back threat.
Based on Benjamin Cowen, the ETH/BTC pair is presently on the draw back, and the final 2 occasions that the pair declined, ETHUSD witnessed a steep decline of round 70%. On condition that the crypto group has been eagerly anticipating an Altcoin season for the previous 2.5 years, Cowen thinks it’s essential to warn the group that there’s nonetheless a risk of a downward motion.
ETH/BTC Pair Rejected By The Bull Market Band
Cowen has additionally confirmed that ETH/BTC is presently being rejected by the bull market help band, which he beforehand predicted days again attributable to a worth pump. “I would expect it (ETH/BTC) to be rejected by the bull market support band, at least when looking at weekly closes ($0.053-$0.054),” he acknowledged. He additional famous that the pump seems to be mirroring the final cycle of price cuts proper earlier than summer season capitulation.
Following the launch of Bitcoin Spot Trade-Traded Funds (ETFs), Cowen talked about that ETH/BTC noticed a pointy rally. The analyst affirms that the rally was most likely much like the development of the earlier bull cycle, ushering in new lows.
Moreover, Cowen acknowledged that there was an unquestionable macro downtrend since November 2021, significantly following the merger of the ETH/BTC pair. Nonetheless, it is usually evident that the market didn’t lower abruptly.
Consequently, traders held ETH as a substitute of BTC all the best way down from 0.085 to 0.048 due to the a number of decrease highs, giving the impression that it was holding up fairly properly.
Previous to the Bitcoin Halving, Cowen predicted that the bull market help band would reject ETH/BTC, at the very least when contemplating weekly closes ($0.053-$0.054), ought to there be a rebound after the Halving, much like that witnessed with BTC spot ETF launch. No matter what happens, the skilled is assured that ETH/BTC will attain between $0.03 and $0.04 by this summer season.
Heightened Divergence Between Ethereum And Bitcoin
Being the 2 main cryptocurrency property, there’s nice curiosity surrounding Ethereum and Bitcoin. Nonetheless, on-chain analytics agency Glassnode has highlighted a shift in efficiency between each digital property.
Based on the agency, the efficiency of Ethereum and Bitcoin has been more and more diverging thus far within the 2023–2024 cycle. This is because of poorer efficiency in ETH worth, which is defined by a typically weaker development in capital rotation. As well as, that is evident when significantly in comparison with previous cycles and all-time highs.
Featured picture from iStock, chart from Tradingview.com
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