In the ever-volatile world of cryptocurrency, renowned crypto analyst Benjamin Cowen is shedding light on a potential capitulation scenario for the Ethereum versus Bitcoin (ETH/BTC) pair, drawing from historical price patterns. Cowen, known for his thorough analysis, recently shared his insights with his 803,000 YouTube subscribers, suggesting that ETH/BTC could face significant trouble if the Federal Reserve decides to cut interest rates in September.
Cowen’s analysis points to a pattern observed during the 2016 market cycle. Back then, the ETH/BTC pair hit a low in June, a month later than the recent cycle’s low in May at 0.045 BTC. According to Cowen, if history repeats itself, ETH/BTC might rally to its immediate resistance at 0.056 BTC in August. However, if the Federal Reserve cuts rates in September, this could trigger a revisit to the support level of 0.045 BTC, potentially leading to a significant decline.
Cowen further predicts that such a rate cut might lead to a collapse of the ETH/BTC pair, sending it to its cycle lows by the end of the year. Reflecting on the past, in December 2016, ETH/BTC dropped to a low of 0.00733 BTC before skyrocketing to a record high of 0.156 BTC a year later. At present, ETH/BTC is trading at 0.0519 BTC, approximately worth $3,524.
Understanding these potential scenarios is crucial for traders and investors. The crypto market’s inherent volatility makes it essential to stay informed and prepared for various outcomes. Cowen’s analysis serves as a reminder of the market’s cyclical nature and the impact of macroeconomic factors on cryptocurrency prices.
