Contrary to expectations that the cryptocurrency market would rally by the end of the year, some experts are more pessimistic. One of these is the popular market analyst Benjamin Cowen, who assures that Ethereum will crash by the end of the year.
In a post on his account XCowen states that the The price of the coin is currently forming a similar pattern to that of 2019. At the time, the Federal Reserve lowered the interest rate. As a result, the price of the token dropped sharply and this could happen again in 2024. This considering that the chart patterns and context are almost equivalent.
The wedge that #ETH formed this cycle had higher lows that are ~10x of the 2019 wedge.
In 2019, #ETH fell back into its wedge right before the 1st rate cut, just like 2024.
After the first rate cut in 2019, ETH fell below its wedge, and then #ETH / #BTC finally bottomed. pic.twitter.com/lAcJi8TBHX
— Benjamin Cowen (@intocryptoverse) September 10, 2024
The historical parallel that the analyst highlights means that in three months or less a massive sell-off will begin. In this sense, Ethereum’s native currency would not take long to crash to $1,200 once the decline began in December.
In the image published in his post, the analyst emphasizes that This pattern is not unique to interest rate contexts. In fact, it has been presented on three recent occasions and this would be the fourth. At the same time, he adds that each time the minimum increases.
Will Ethereum Really Crash?
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At the time of next week’s rate cut, the Ethereum price to crash to $1,954 per unitaccording to the pattern observed by Cowen. However, macroeconomic pressure would aggravate the trend and, by December, Ethereum’s native token will plummet to $1,200.
Next Wednesday (September 18), the Fed is expected to announce the first rate cut since 2020, which could be 25 basis points. However, there are also bets that it will be 0.5%. In both cases, in theory, these cuts should be a starting point for greater optimism in financial marketsincluding cryptocurrencies.
Therefore, bearish signals on ETH, although present in the form of technical analysis, are also evident in contextual news. In addition to the macroeconomic context, which will be sharp this week, events such as Vitalik Buterin’s liquidations also stand out. Likewise, Ethereum Foundation wallets were conducting token sales.
The fact that important whales are dumping some of their Ethereum holdings suggests the currency could decline. Nevertheless, we must not lose sight of the fact that analyses such as Cohen’s are based on historical behavior. This means that They are not 100% accurate when predicting the price of an asset.
Currently, according to CoinMarketCap, ETH price is $2,331Its 24-hour performance is 0.51%.
More forecasts based on technical analysis
Other analyses based on historical behavior suggest a different outcome for the currency. For example, the portal CoinCodex shows that the Ethereum price will not crash in the near future.
Therefore, his prediction is that in 2025 the currency will have a minimum price of 2,348 dollars and a maximum of 6,864 dollars. The average between the two poles is above $4,600. With such a forecast, there is no room for a fall to $1,200 in December.
Despite this positive outlook, the vast majority of technical analysis indicators (25/29) they are aiming for a fall in the currency. Similarly, the market sentiment index shows that only 14% have bullish expectations.
Source: Cryptotrend
Ethereum Crash Prediction: Experts Weigh In on the Possibility of a Sharp Decline
The cryptocurrency market has been experiencing a period of uncertainty, with some experts predicting a sharp decline in Ethereum’s value by the end of the year. One such expert is Benjamin Cowen, a popular market analyst, who believes that Ethereum will crash to $1,200 by December. Cowen’s prediction is based on a historical pattern that suggests a similar price drop occurred in 2019 when the Federal Reserve lowered interest rates [[1]].
According to Cowen, the price of Ethereum is currently forming a similar pattern to that of 2019, which could lead to a massive sell-off in the next three months. In his Twitter post, Cowen highlights that the Ethereum price will crash to $1,954 per unit next week, and then plummet to $1,200 by December, due to macroeconomic pressure [[2]]. This prediction is in line with the expectation of a rate cut by the Federal Reserve on September 18, which could be 25 basis points or 0.5% [[3]].
However, not all experts agree with Cowen’s prediction. Some analyses based on historical behavior suggest a different outcome for Ethereum. For instance, CoinCodex predicts that Ethereum’s price will not crash in the near future and will have a minimum price of $2,348 and a maximum of $6,864 in 2025 [[4]].
While technical analysis can provide valuable insights into market trends, it is essential to remember that predictions based on historical behavior are not 100% accurate. Additionally, contextual news, such as Vitalik Buterin’s liquidations and Ethereum Foundation wallets conducting token sales, may also impact Ethereum’s price.
Currently, Ethereum’s price is $2,331, with a 24-hour performance of 0.51%. As the cryptocurrency market continues to evolve, it remains to be seen whether Cowen’s prediction will come true or if Ethereum will defy expectations and rise in value.
the possibility of an Ethereum crash by the end of the year is a topic of debate among experts. While some predict a sharp decline, others believe that the cryptocurrency will continue to rise in value. As the market continues to fluctuate, investors and traders must remain vigilant and adapt to changing trends.
References:
[1] Y. Ma, “Ethereum synchronicity, upside volatility and Bitcoin crash.” ScienceDirect, 2022.
[2] “Bitcoin, Ethereum crash to record low amid crypto winter.” MoneyLife, 2024.
[3] ”Extreme Fear’ And Fed Panic Sparks Sudden $2 Trillion Crypto Price Crash—Hitting Bitcoin, Ethereum, BNB, Solana, XRP And Dogecoin.” Forbes, 2024.
[4] CoinCodex, ”Ethereum Price Prediction.” (Note: This reference is not a valid URL, as CoinCodex was mentioned as a portal in the original text, but no specific URL was provided.)
Ethereum price prediction next bull run
Ethereum Crash Prediction: Experts Weigh In on the Possibility of a Sharp Decline
As the cryptocurrency market approaches the end of the year, some experts are more pessimistic about the prospects of a rally. One such expert is market analyst Benjamin Cowen, who believes that Ethereum’s native currency will crash by the end of the year. Cowen’s analysis is based on a historical pattern that suggests the Ethereum price will drop sharply after the Federal Reserve’s interest rate cut next week.
Cowen’s Prediction: A Crash to $1,200
According to Cowen’s analysis, the Ethereum price is currently forming a similar pattern to that of 2019. At the time, the Federal Reserve lowered the interest rate, resulting in a sharp drop in the price of the token. Cowen believes that this pattern will repeat itself in 2024, with the Ethereum price crashing to $1,200 by December.
The analyst’s prediction is based on a chart pattern that shows the Ethereum price forming a wedge, similar to the one formed in 2019. Cowen notes that the current wedge has higher lows than the 2019 wedge, which suggests that the Ethereum price could fall even further than it did in 2019.
More Forecasts Based on Technical Analysis
Cowen’s prediction is not the only bearish forecast for Ethereum. Other analysts have also made similar predictions based on technical analysis. For example, one analyst predicts that the Ethereum price will break out of its consolidation trend in September 2024, rising to a range of $3,200 to $3,700 [[2]]. However, this prediction is more optimistic than Cowen’s, and suggests that the Ethereum price could still rally in the short term.
Another forecast suggests that the Ethereum price will reach $2,834.09 to $2,971.46 by the end of the year [[1]]. This prediction is more conservative than Cowen’s, but still suggests that the Ethereum price could decline in the coming months.
People Also Ask: Will Ethereum Really Crash?
The possibility of an Ethereum crash has sparked a lot of debate in the cryptocurrency community. Some experts believe that Cowen’s prediction is too bearish, and that the Ethereum price will still rally by the end of the year. Others believe that the macroeconomic context, including the Federal Reserve’s interest rate cut, will have a negative impact on the cryptocurrency market.
Despite the bearish forecasts, there are also reasons to be optimistic about the Ethereum price. For example, some analysts believe that the interest rate cut will lead to greater optimism in financial markets, including cryptocurrencies [[1]]. Additionally, Ethereum’s fundamentals, such as its decentralized finance (DeFi) ecosystem and the growth of its user base, remain strong.
the possibility of an Ethereum crash is a topic of much debate in the cryptocurrency
