Ethereum
Crypto expert weighs in on the recent decline of the ETH/BTC pair
Istanbul, Turkey – February 7, 2018: Close-up of Bitcoin, Litecoin and Ethereum commemorative coins on a computer keyboard. Bitcoin, Litecoin and Ethereum are global cryptocurrencies and payment systems.
Amidst the turmoil surrounding the crypto market, popular Into The Cryptoverse Founder and Chief Executive Officer (CEO) Benjamin Cowen took the spotlight to share his views on the recent downward trend seen in the Ethereum/Bitcoin pair (ETH/BTC). At Cowen views examine the complex relationship between Ethereum and Bitcoin prices and the potential for further downside risk.
According to Benjamin Cowen, the ETH/BTC The pair is currently trending lower, and the last 2 times the pair declined, ETHUSD saw a sharp decline of around 70%. Since the crypto community has been looking forward to an Altcoin season for 2.5 years, Cowen believes it is crucial to warn the community that there is always a possibility of a downward move.
ETH/BTC pair rejected by bull market band
Cowen also confirmed that ETH/BTC is currently rejected by the bull market support band, which he predicted a few days ago due to a price rally. “I would expect (ETH/BTC) to be rejected by the bull market support band, at least considering the weekly closes ($0.053 – $0.054),” he said. He further noted that the pump appears to reflect the last cycle of rate cuts just before the summer capitulation.
Following the launch of Bitcoin Spot Exchange Traded Funds (ETFs), Cowen mentioned that ETH/BTC saw a strong rise. The analyst says the rally was likely similar to the trend of the previous bull cycle, paving the way for new lows.
Additionally, Cowen said there has been an undeniable macro downtrend since November 2021, particularly following the ETH/BTC pair merger. However, it is also clear that the market has not declined sharply.
As a result, investors held ETH instead of BTC all the way down from 0.085 to 0.048 due to the multiple lower highs, making it look like it was holding up quite well.
Before Bitcoin halved, Cowen predicted that the bull market support band would reject ETH/BTC, at least when considering weekly closes ($0.053 – $0.054), in the event of a rebound after the halving, similar to that observed with the launch of the BTC spot ETF. Whatever happens, the expert is confident that ETH/BTC will reach between $0.03 and $0.04 by this summer.
Increased divergence between Ethereum and Bitcoin
Being the two main cryptocurrency assets, they attract great interest. Ethereum and Bitcoin. However, on-chain analytics company Glassnode has Underlines a change in performance between the two digital assets.
According to the firm, the performance of Ethereum and Bitcoin So far, the divergence has deepened during the 2023-2024 cycle. This is due to the lower performance of the ETH price, which is explained by a generally weaker trend in capital turnover. Moreover, this is evident when comparing it to previous cycles and all-time highs.
Featured image from iStock, chart from Tradingview.com