Crypto analyst Benjamin Cowen says that Ethereum (ETH) is most likely gearing up for a major breakout after nearly a year of sideways reaccumulation.
In a new strategy session, Cowen says that the price range between $2,000 and $4,000 is one big reaccumulation zone for Ethereum on its way to higher prices.
“It would seem like there’s a good possibility that Ethereum would also eventually break out of this long reaccumulation zone that has basically just been $2,000 and $4,000. Between $2,000 and $4,000 is the reaccumulation zone in my opinion. If we break out of that and head higher, that’s when things can get somewhat crazy. There’s no guarantee that we ever come back to these prices again if we go higher.
We could, but whenever we breakout from here we’ve never visited these prices.”
Cowen puts forth a scenario whereby Ethereum manages to fully come out of the current sideways market structure by June or July of this year, before going on a parabolic rally that ultimately ends with a bear market back down to the current reaccumulation zone.
“If we do come out of this downtrend let’s say by the summer, and we come back up to the prior all-time highs, and then Ethereum breaks out and we start trending higher, maybe we get up to the $7,000-$8,000 level and then we have to go sideways there for half a year…
And then, if it breaks out into some final market cycle peak like that, then perhaps this downtrend will end somewhere below a potential accumulation range… This would just be if it repeats what happened last time.”
At time of writing, Ethereum is trading at $3,047, up 13% in the last week but still down over 37% from its all-time high.
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