Popular crypto analyst Benjamin Cowen says he expects Ethereum (ETH) to experience significant levels of pain as Bitcoin (BTC) and the stock market hint at downward moves.
In a new strategy session, the technical analyst tells his 768,000 YouTube subscribers that the NASDAQ, S&P 500, Bitcoin and Ethereum all look poised to at least test recent lows.
With Ethereum significantly more volatile than Bitcoin and the stock market, Cowen points out that ETH’s critical technical support is much further away than the other assets. In a decline across all risk assets, the analyst says Ethereum would be the hardest hit.
“Some indices, like the NASDAQ and the S&P 500, are starting to flirt with the idea of going down and at least retesting the previous low and potentially setting a lower low. Now the only thing to consider on this is if Ethereum tests the low again – this is very important and that’s why I want to make it clear how more volatile assets like Ethereum can really underperform Bitcoin in a bear market – imagine the S&P retests the low and we see that spread across risk assets. If the S&P retests this low (3,636 points), Bitcoin will likely test its own low, and Ethereum will likely do the same.
The problem with that is that for Ethereum to retest its previous low, it would have to go down 40%, but for Bitcoin to test its own previous low, it would only need to go down about 10%.
So this is a big difference, and this is one of the main reasons why I think the Ethereum Bitcoin (ETH/BTC) value simply looks like another distribution phase.”
Ethereum is not reacting to the successful proof-of-stake merger and is trading at $1,451, down nearly 20% in the past seven days.
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