Popular Analyst Predicts ETH Fall To $1,200 By December

Ethereum News: Analyst Benjamin Cowen has recently expressed concerns over Ethereum’s price trajectory, predicting a significant downturn to approximately $1,200 by December 2024. This forecast is based on a detailed analysis of Ethereum price patterns, which appear to be forming a wedge similar to the one observed in 2019. This historical parallel suggests that Ethereum could be poised for a similar downturn.

Ethereum News: Benjamin Cowen Predicts ETH Price Drop to $1,200

In a recent tweet on X, analyst Benjamin Cowen shared a chart illustrating a wedge formation in Ethereum price movement, mirroring patterns seen in 2019. According to Cowen, these formations have historically preceded significant price declines. 

The 2019 wedge led to a steep drop after a Federal Reserve rate cut. Cowen believes the current market conditions and similar price patterns could result in a downturn that might push ETH price to as low as $1,200 by the end of 2024.

Further reinforcing his predictions, Cowen analyzed Ethereum price responses to macroeconomic triggers, like Federal Reserve’s policy changes. Given the anticipated US Fed interest rate cut by 0.5%, the analyst expects ETH to break below the current wedge pattern, triggering a sell-off similar to past events. 

Historical Patterns and Market Dynamics

The comparison of Ethereum current wedge formation to that of 2019 offers a glimpse into possible future movements. In 2019, Ethereum price initially saw incremental lows forming a wedge that eventually broke downwards.

Similarly, the current formation shows Ethereum making higher lows at $886, $1,069, $1,515, and most recently, $1,954. Such patterns suggest a buildup to a possible downward correction.

Additionally, the market context surrounding Ethereum news, including recent high-profile sales from the Ethereum Foundation and wallets linked to Vitalik Buterin, have introduced further bearish sentiment into the market. These large transactions often lead to speculations and cautious investor behaviour, contributing to potential price drops.

In other Ethereum news today, On-chain analytics platform LookonChain noted that Metalpha Ether selling continued for the fourth consecutive day. This further increases the selling pressure supporting the analysts’ bearish prediction.

Implications on Market And ETH Price Action

According to Cowen’s analysis, if Ethereum were to follow the downward path suggested by the wedge pattern, the price could fall significantly. He stated,

“In 2016 and 2019 ETH / BTC broke down, and ETH / USD dropped 70% to 0.300 risk. 0.300 risk right now is $1208.”

Concurrently, the ongoing bearish sentiment is exacerbated by the increasing number of whales offloading their holdings. 

Adding to the bearish Ethereum news, the Moving Average Convergence Divergence (MACD) indicator on the weekly chart is trending below the signal line, suggesting bearish momentum. The recent crossover, where the MACD line crossed below the signal line, highlights increasing selling pressure.

At the time of writing, ETH price is $2,351.86, marking a 1.63% increase over the last 24 hours. This price movement is accompanied by a notable 14.94% rise in trading volume, suggesting increased market activity. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. His work includes notable contributions to Cryptopolitan and Coingape News Media, where he shares his insights on the latest developments in the cryptocurrency market. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.