As the cryptocurrency market experiences volatile price movements, the focus remains on the top cryptocurrencies, as it is believed that their rises bring activity and revive the market with an influx of money. However, renowned analyst Benjamin Cowen has made pessimistic comments about Ethereum, the leading altcoin.
Will Ethereum Experience a Drop?
Cowen, a widely followed cryptocurrency analyst, has issued a warning that Ethereum (ETH) could witness a significant decline in value. He points out that Ethereum has fallen below the Market Support Band (MSB), which is an indicator that uses the 20-week simple moving average and the 20-week exponential moving average to determine the direction of an asset’s trend.
According to Cowen, Ethereum’s price has previously experienced significant drops when it closed below the MSB, and the current period resembles those instances. These statements have raised questions and concerns among investors, especially during a time of market uncertainty.
What is Ethereum’s Current Price?
Earlier today, Ethereum briefly surpassed $3,000 but has since dropped back down to $2,950 at the time of writing. Alongside this price decline, the market cap has also decreased to approximately $350 billion.
Despite the drop in price, the 24-hour trading volume has increased by 5% to $14 billion, making Ethereum the third most traded coin.
Additionally, Cowen predicts that the Ethereum/Bitcoin (ETH/BTC) pair will reach its lowest point in the upcoming weeks, but it may take longer for the ETH/USD pair to reach its bottom.
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Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.