Closely followed crypto analyst Benjamin Cowen says that Ethereum (ETH) is heading toward a big move in about three months.
In a new strategy session, Cowen tells his 784,000 YouTube subscribers that ETH is trading within a large wedge pattern that could lead to a breakout by May of this year.
Cowen says that to the downside of the wedge is what he thinks is the “deep value” zone for Ethereum, between the $600 to $1,000 price range.
“Eventually, it’s going to have to break out one way or another because this is sort of coming to an endpoint by May. So I would expect us to either break to the upside or the downside by May. Of course, you guys know my opinion, I would prefer to see it go home to the regression line [or] regression trendline because that’s ultimately where I think the deep value can be found in the same way it was found over here in 2018, the same way it was found in 2020. So I think that’s worthwhile to continue watching.”
Cowen also looks that ETH in its Bitcoin pair (ETH/BTC) to gauge its strength. According to the popular analyst, ETH/BTC is coming to an inflection point, probably by next month, with the odds leaning toward a downward move.
“This is also coming to a sort of a point sometime by March. Not only is the ETH/USD coming to a decision point by that March and April timeframe, you could argue the ETH/BTC valuation is coming to a very similar phase. Another way that I thought was worthwhile to take a look at the ETH/BTC valuation is to not just measure the price relative to Bitcoin because the supply is of course changing. Why don’t we measure the market cap of Ethereum divided by the market of Bitcoin?
I look at it in the top range over here and I can’t help but wonder if it’s not just looking like this [2018], where it has this sort of distribution phase in this upper region only to ultimately break to the downside.”
At time of writing, ETH is trading at $1,534.
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