Popular crypto analyst Benjamin Cowen says that he expects Ethereum (ETH) to witness significant levels of pain as Bitcoin (BTC) and the equities market hint at downward moves.
In a new strategy session, the technical analyst tells his 768,000 YouTube subscribers that the NASDAQ, S&P 500, Bitcoin and Ethereum all look ready to at least test recent lows.
With Ethereum being significantly more volatile than Bitcoin and the stock market, Cowen points out that ETH’s critical technical support is much further away than the other assets. In a downturn across all risk assets, the analyst says Ethereum would be hit the hardest.
“Certain indices like the NASDAQ and the S&P 500, they are starting to flirt with the idea of going down and at the very least retesting the prior low and potentially putting in a lower low. Now the one thing to consider on this is if Ethereum retests its low – this is really important and this is why I want to make it clear how more volatile assets like Ethereum can really underperform Bitcoin in a bear market – imagine the S&P retests its low and we see that propagated across risk assets. If the S&P retests this low (3,636, points), then Bitcoin is likely to test its own low and Ethereum would likely do the same.
The problem with that is for Ethereum to retest its prior low, it would need to go down 40%, but for Bitcoin to retest its own prior low, it would only need to go down approximately 10%.
So this is a big difference, and this is one of the main reasons I think that the Ethereum Bitcoin (ETH/BTC) valuation simply looks like another distribution phase.”
Not responding to its successful merge to proof of stake, Ethereum is trading at $1,451, down nearly 20% in the last seven days.
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