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U.Today – Benjamin Cowen, a crypto analyst and trader, has expressed concerns about a possible significant drop in Ethereum (ETH) price.
In a recent analysis, Cowen pointed to the possibility of a 60 percent price drop for ETH, citing the loss of key support levels for the trading pair.
The ETH/BTC trading pair, which compares the value of Ethereum to that of, is widely considered a key indicator of market sentiment and relative strength between the two largest cryptocurrencies.
According to Cowen's analysis, the recent loss of key support levels in the ETH/BTC pair could indicate further downside in Ethereum price in the short term.
According to the crypto analyst, ETH/BTC broke the key support in the last two cases and the pair fell 60% from its previous local high in three to six months. He mentioned that ETH/BTC had just lost support and the impact of this development is currently unknown.
Cowen's warning comes at a time of increased volatility and uncertainty in the cryptocurrency market, with Ethereum subject to price and trading volume fluctuations.
The loss of support for the ETH/BTC pair adds uncertainty to 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, with around 9.37 million addresses holding nearly 53 million ETH.
While Cowen's prediction of a 60% decline is stark, it's important to remember that predictions are not certainties. While historical trends and potential results may be material, past performance may not be indicative of future results.
In other news, the Ethereum community is debating a change to ETH monetary policy in response to proposals aimed at limiting the rapid expansion of the stake pool. This discussion was sparked after two Ethereum researchers suggested slowing the issuance of ETH, thereby reducing staking incentives.
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