Amid turbulence surrounding the crypto market, widespread founder and Chief Executive Officer (CEO) of Into The Cryptoverse Benjamin Cowen has taken the highlight to shed his insights on the current downtrend noticed within the Ethereum/Bitcoin (ETH/BTC) pair. Cowen’s views study the complicated relationship between Ethereum and Bitcoin pricing and the potential for additional draw back danger.
According to Benjamin Cowen, the ETH/BTC pair is at the moment on the draw back, and the final 2 occasions that the pair declined, ETHUSD witnessed a steep decline of round 70%. Given that the crypto neighborhood has been eagerly anticipating an Altcoin season for the previous 2.5 years, Cowen thinks it’s essential to warn the neighborhood that there’s nonetheless a chance 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 assist band, which he beforehand predicted days again as a consequence of a value 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 said. 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 Exchange-Traded Funds (ETFs), Cowen talked about that ETH/BTC noticed a pointy rally. The analyst affirms that the rally was most likely just like the development of the earlier bull cycle, ushering in new lows.
Furthermore, Cowen said that there was an unquestionable macro downtrend since November 2021, notably following the merger of the ETH/BTC pair. However, additionally it is evident that the market didn’t lower abruptly.
As a consequence, buyers 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 effectively.
Prior to the Bitcoin Halving, Cowen predicted that the bull market assist band would reject ETH/BTC, no less than when contemplating weekly closes ($0.053-$0.054), ought to there be a rebound after the Halving, just like that witnessed with BTC spot ETF launch. Regardless of 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 may be nice curiosity surrounding Ethereum and Bitcoin. However, on-chain analytics agency Glassnode has highlighted a shift in efficiency between each digital property.
According to the agency, the efficiency of Ethereum and Bitcoin has been more and more diverging to this point within the 2023–2024 cycle. This is because of poorer efficiency in ETH value, which is defined by a typically weaker development in capital rotation. In addition, that is evident when notably in comparison with previous cycles and all-time highs.
Featured picture from iStock, chart from Tradingview.com
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