Widely followed crypto analyst Benjamin Cowen believes the corrective period for Ethereum (ETH) is still not over.
In a new strategy session, Cowen tells his 713,000 YouTube subscribers that he’s closely watching Ethereum’s reaction as it approaches a bull market support band.
The bull market support band is a technical indicator that combines the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
According to Cowen, Ethereum’s inability to even touch the bull market support band before resuming its downtrend is a clear sign of weakness.
“It looks to me we are facing some level of rejection here. If you zoom in, we didn’t even make it there. We didn’t even make it to the 21-week EMA before getting rejected, which to me looks pretty weak to be completely honest.”
The crypto strategist is also looking at Ethereum against Bitcoin (ETH/BTC) and says the pair is also bearish after failing to reclaim the bull market support band.
“Furthermore, the Ethereum/Bitcoin valuation is getting rejected off of its own bull market support band. It’s hard for me to look at this and say either of these looks bullish. It’s hard for me to say, ‘Look, either Bitcoin looks bullish or Ethereum looks bullish.’ Right now, neither of them looks bullish.”
As for his bearish target for Ethereum, Cowen says he sees the leading smart contract platform trading below $2,000.
“We are still very much in our macro range of around say $1,700 up to let’s just call it a little over $4,000. But I think it’s more likely that, at the very least, we probably come back down and retest this low [$1,700].”
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