Amidst the turmoil surrounding the cryptocurrency market, popular founder and CEO (CEO) of Into The Cryptoverse Benjamin Cowen grabbed the spotlight to share his observations on the recent downtrend seen in the Ethereum/Bitcoin (ETH/BTC) pair. Cowen views explore the sophisticated relationship between Ethereum and Bitcoin prices and the potential for further downside risks.
According to Benjamin Cowen, ETH/BTC the pair is currently in the red and the last 2 times the pair has fallen, ETHUSD has seen a edged decline of around 70%. Given that the cryptocurrency community has been eagerly awaiting the Altcoin season for the past 2.5 years, Cowen believes it is extremely essential to warn the community that there is still the possibility of a move down.
The ETH/BTC pair rejected by the bull market
Cowen too confirmed that ETH/BTC is currently being rejected by the bullish support band he previously predicted a few days ago due to the price pump. “I would expect (ETH/BTC) to be rejected by the bullish support band, at least looking at weekly closes ($0.053-0.054),” he stated. He further noted that the pump appears to reflect the last cycle of interest rate cuts just before the summer capitulation.
After starting Bitcoin Spot Exchange Traded Funds (ETFs)Cowen mentioned that ETH/BTC has seen a surge. The analyst says the rally likely followed the trend of the previous bull cycle, ushering in fresh lows.
Additionally, Cowen stated that there is an undisputed downward trend on a macro scale since November 2021, especially after the ETH/BTC pair merger. However, you can also see that the market has not plummeted.
As a result, investors held ETH instead of BTC until it dropped from 0.085 to 0.048 due to multiple lower highs, giving the impression that it was doing quite well.
Before Bitcoin halvingCowen predicted that the bullish support band will reject ETH/BTC, at least based on weekly closes ($0.053-0.054), if a post-halving rebound occurs similar to what was seen with the introduction of spot BTC ETFs. Regardless of what happens, the expert is confident that the ETH/BTC rate will reach between $0.03 and $0.04 this summer.
Increased divergence between Ethereum and Bitcoin
Being two of the leading cryptocurrency assets, it is in high demand Ether and Bitcoin. But supply chain analytics company Glassnode did highlighted performance change between both digital assets.
According to the company, Ethereum performance and Bitcoin in the 2023–2024 cycle are increasingly diversified. This is due to the underperformance of ETH prices, which can be explained by an overall weaker capital turnover trend. Moreover, this is especially noticeable when compared to previous cycles and all-time highs.
Featured image from iStock, chart from Tradingview.com
