Widely followed crypto analyst Benjamin Cowen is warning of a possible Ethereum (ETH) collapse relative to Bitcoin (BTC) as the altcoin markets continue to flash signs of weakness.
In a new strategy session, Cowen tells his 783,000 YouTube subscribers that the ETH/BTC pair could drop more than 45% from its current value of 0.066 BTC, worth $1,650.
According to Cowen, the ETH/BTC pair could potentially ignite a recovery rally later this year after witnessing a deep retracement.
“As far as I can tell, all we’ve seen with the Ethereum/Bitcoin valuation is a series of lower highs, at least in the short term.
Now, I will remind you that over a longer period of time, we have seen a series of higher lows, but we’ve also had lower highs from 2017. So there’s this element here of perhaps the time to consider a more likely bullish trend is somewhere down here [at the 0.036 BTC level]. And maybe it’s down here that we can then start to speculate about some type of recovery.”
Cowen also highlights that any chance of a rally is likely out of the table for ETH/BTC until it completes the corrective move.
“But I still do think that this part is going to be a necessary component whether you want to argue that the Ethereum/Bitcoin valuation is an oscillator and it has to come back down here [to the 0.019 BTC level] or whether you want to argue that it’ll eventually come back up this way. I think no matter what, it likely has to come back down in the short term before we figure out the ultimate trajectory of the Ethereum/Bitcoin valuation.”
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