U.Today – Benjamin Cowen, a cryptocurrency analyst and trader, has expressed concern about the possible significant collapse of the price of Ethereum (ETH).
In a recent analysis, Cowen hinted at the possibility of a 60% drop in ETH price, citing the loss of crucial support levels for the trading pair.
The ETH/BTC trading pair, which compares the value of Ethereum to that of , is widely considered an important indicator of market sentiment and relative strength between the two largest cryptocurrencies.
According to Cowen's analysis, the recent loss of important support levels in the ETH/BTC pair could indicate a further decline for the price of Ethereum in the near term.
According to the crypto analyst, on the last two occasions, ETH/BTC broke important support and the pair fell 60% from its previous local high in three to six months. He mentioned that ETH/BTC has just lost support and the implications of this development are currently unknown.
Cowen's warning comes amid a period of increased volatility and uncertainty in the cryptocurrency market, with Ethereum experiencing fluctuations in its price and trading volume.
The loss of support for the ETH/BTC pair adds to the uncertainty surrounding Ethereum price as it struggles to hold the crucial $3,000 level.
ETH is down 3% in the last 24 hours to $3,055 at the time of writing. According to crypto analyst Ali, the next critical support zone for Ethereum is currently between $2,000 and $2,430, where around 9.37 million addresses hold almost 53 million ETH.
While Cowen's prediction of a 60% drop is clear, it is important to realize that the predictions are not certainties. While it may be crucial to consider historical trends and potential results, past performance may not indicate future results.
In separate news, the Ethereum community is debating a change to ETH monetary policy in response to proposals aimed at limiting the rapid expansion of the staking pool. This discussion was sparked after two Ethereum researchers proposed slowing down the issuance of ETH and therefore reducing incentives to stake.
This article was originally published on U.Today.
