Cryptocurrency analyst Benjamin Cowen has warned traders that the value of Ethereum ETH/USD might crash greater than 65% in the course of the bear market as a consequence of at the least one major economic concern.
Addressing his over 779,000 followers on YouTube in a method session, Cowen mentioned the world’s second-largest cryptocurrency by market capitalization would possibly fall greater than 65% from its present degree of $1,180.
“I do suppose you’re nonetheless taking a look at a leg decrease right here on Ethereum’s valuation in opposition to the U.S. Greenback. I feel round that $400-$600 vary is an effective spot to start searching for that very same sort of worth that we noticed within the final cycle.”
The social threat metric, which measures retail curiosity out there by counting the quantity of people that watch cryptocurrency YouTube channels and comply with accounts on Twitter dedicated to digital belongings, is one other space that Cowen is intently monitoring.
Ethereum Getting ready For A Main Promote-Off Occasion
The social threat index for Ethereum, in accordance with Cowen, signifies that ETH is getting ready for one more sell-off occasion.
“I nonetheless suppose Ethereum is probably going taking a look at decrease costs finally. I feel that is supported by the thought of social threat. Social threat is lastly placing in new lows. When the social threat goes down usually the Bitcoin dominance goes up,” he mentioned.
“As a social threat plummets prefer it did again over right here in 2018, that was the place Ethereum took its subsequent leg down,” he added.
Furthermore, in accordance with Cowen, the danger of a recession is an extra bearish issue, because the Federal Reserve continues a hawkish financial coverage.
“I perceive that you realize a $600 Ethereum or perhaps a $400 Ethereum is one other 50% correction or extra from these ranges. However I do suppose there may be motive to suppose that it might occur, not solely from a value perspective and a technical perspective,” Cowen says.
“And I do know there’s type of the elemental thought of all of the Ethereum that’s been burned and whatnot. However the different aspect of it’s that we’re taking a look at a recession. If a recession is coming, it’s probably not factor for threat belongings like cryptocurrencies,” he provides.
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