Widely followed cryptocurrency analyst Benjamin Cowen is warning that the price of Ethereum (ETH) could depreciate drastically.
Cowen tells his 801,000 YouTube subscribers that Ethereum has fallen below the bull market support band (BMSB), an indicator consisting of a 20-week simple moving average and a 21-week exponential moving average used to determine whether the price of an asset is in bullish or bearish territory.
“The last time that Ethereum fell below its bull market support band was actually about 30 weeks ago. Or the last time it was below its 20-week simple moving average was about 30 weeks ago. So it’s been quite a while and now we have closed below it once again.”
According to Cowen, the price of Ethereum fell drastically during two previous times that closely resemble the current moment when the second-largest crypto asset closed below the BMSB.
“In both cases, after it fell below the Bull Mark Support Band, Ethereum/US dollar then fell about another 50%…
…50% from here [around $2,970] puts ETH all the way back down at around $1,400.”
Ethereum is trading at $2,902 at time of writing.
The widely followed analyst says that he foresees the Ethereum/Bitcoin (ETH/BTC) pair bottoming out over the coming weeks though the Ethereum/US dollar (ETH/USD) pair could take longer to form a bottom.
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