Prominent crypto analyst Benjamin Cowen has recently suggested that a single event could trigger a significant drop in Ethereum\u2019s (ETH) value relative to Bitcoin (BTC). <\/p>\n
According to a report by The Daily Hodl published earlier today, in a recent discussion with Crypto Banter host Ran Neuner, Cowen speculated that the ETH\/BTC pair could experience a drop of over 50% from its current value of 0.063 BTC, equivalent to $1,828.<\/p>\n
Cowen\u2019s prediction is based on his observation that the ETH\/BTC pair appears to form a bearish double-top pattern on the monthly chart. This pattern suggests that investors will likely trade their ETH for BTC during any rally. Cowen described the current situation as a \u201cmassive distribution phase,\u201d similar to patterns observed in previous cycles.<\/p>\n
Cowen notes that historically the ETH\/BTC pair has shown a tendency to decline from June through December. Cowen anticipates a potential drop to as low as 0.03 BTC ($871):<\/p>\n
\u201cSo what I would think is going to happen is that Ether\/Bitcoin could plummet to around that 0.03 (BTC) to 0.04 (BTC) level and once the Ethereum\/Bitcoin valuation gets there, I think that it could mark the end of the altcoin reckoning.<\/em>\u201c<\/p>\n According to Cowen, the catalyst for this significant ETH\/BTC decline could be a retracement in the stock market. He drew parallels with the late 2017 scenario when the ETH\/BTC pair dropped to .022 BTC. A second drop to this level in 2018 marked the end of many altcoins\u2019 reckoning. Cowen suggests that a similar pattern could be unfolding now, with a secondary drop to the level of 0.049 BTC potentially on the horizon.<\/p>\n However, Cowen also cautioned that even after reaching this level, the ETH\/BTC pair could experience further drops before finding a bottom. He believes that a potential seasonal correction in the S&P 500 could be the trigger for this scenario.<\/p>\n https:\/\/youtube.com\/watch?v=7rDDYkLSdxY%3Ffeature%3Doembed<\/p>\n