Ethereum’s recent price action has investors worried. Will the altcoin repeat its past cycle or will a new trend begin? Analyst Benjamin Cowen says that the key ETH/BTC and ETH/USD levels are giving mixed signals. This is making investors wonder what will happen next. Here are the possible scenarios to expect…
ETH/BTC Analizi
It’s critical to examine Ethereum’s performance against Bitcoin. The ETH/BTC pair recently broke below the 0.04 level, marking a significant reversal. Historically, when ETH/BTC falls, it tends to bottom within 8-10 weeks. The recent low fits this timeframe, suggesting a bottom could be near. However, Cowen warns of conflicting signals. For example, ETH/BTC previously bottomed when the Federal Reserve switched from quantitative tightening to easing, but that has yet to happen. This raises the possibility of ETH/BTC making a temporary bounce, but it also raises the possibility of revisiting lower levels before a sustained recovery.
Interestingly, despite the uncertainty in the ETH/BTC pair, Cowen’s analysis suggests that ETH/USD is mirroring the 2016 and 2019 patterns. Both periods saw green months in the first quarter, followed by red April and May recoveries. If history repeats itself, September could end with a green month for ETH like in 2016 and 2019. The real question is whether the final phase of the 2016 pattern will play out, in which ETH experienced three red months in October, November, and December before rallying the following year.
Ethereum Price Movement
With a 10% increase over the last ten days, ETH is currently trading at $2,673, its weakest performance since the August 5 crash. Can this momentum continue? Traders should keep an eye on the key resistance level of $2,702 on September 23. If buyers fail to break through this level, the price could fall. However, the historically positive month of October means that this decline could present a buying opportunity and pave the way for a retest of the $2,820 level.
