Just like Bitcoin (BTC), Ethereum (ETH) price has been trading significantly sideways recently. Due to this downtrend, the legendary cryptocurrency analyst has offered some insights into Ethereum’s price movements, predicting that the pioneering altcoin could bottom out in the next three months.

Ethereum to reach December low

Benjamin Cowen, founder of ITC Crypto and a prominent cryptocurrency analyst, has published YouTube video discussing Ethereum’s price movements, highlighting the potential correlation between ETH price is falling with the augment in the unemployment rate in the United States (USA).

Historically, the US unemployment rate peaks in December, and Ethereum has experienced lowest price in the same month in both 2016 and 2019. Given the currently rising unemployment rate in the U.S., Cowen suggests that a continuation of this economic trend could lead to a peak in December 2024, potentially coinciding with Ethereum’s price low.

Over the past few months, the price of Ethereum has been at unusual downward trend, breaking up by more than 20% earlier this year and fell below $3,000. The cryptocurrency reflected Bitcoin price is fallingbleeding red almost immediately after the broader market turned bearish.

Despite the launch Spot Ethereum ETFs (Exchange Traded Funds)ETH has not gained enough momentum to push its price back to its previous highs. Given the cryptocurrency’s extensive downtrend, Cowen predicts that Ethereum could soon see a 50% drop.

While the analyst acknowledged that the projected decline may not be as severe as a 50% drop, he still believes that some degree of decline, even if soft, is likely. As a result, Cowen has determined fresh target for ethereum price by December, predicting that the price of the pioneering cryptocurrency could fall to $1,200 from its current value.

While drawing parallels between Ethereum’s price action in 2019 and 2024, Cowen suggested in a comment that X (formerly Twitter) fasting that ETH may temporarily fall below its recent level formed a wedge pattern before it finds a price bottom. The analyst believes that after Ethereum hits its price bottom, the cryptocurrency could be heading towards a significant price recovery.

At the time of writing, CoinMarketCap data indicates that Ethereum is trading at $2,354, up a modest 1.26% over the past 24 hours.

Selling pressure increases for ETH

Amid price declines and broader market volatility, Ethereum has also experienced augment in sales pressure. September 10 Lookonchain reported that MetaAlpha, a firm providing hedging and trading services, made another immense transaction, depositing 10,000 ETH tokens worth $23.45 million.

Over the past four days, the company has transferred a total of 33,589 ETH, which is approximately $77.55 million, to the Binance cryptocurrency exchange. Ethereum Foundationa non-profit organization that recently supported the Ethereum ecosystem sold another 100 ETH tokens, bringing the total ETH sales since January to 2,616 ETH.

Featured image created with Dall.E, chart from Tradingview.com