A widely followed crypto analyst is looking at historical price action to lay out a capitulation scenario for the Ethereum versus Bitcoin (ETH/BTC) pair.
In a new video update, crypto strategist Benjamin Cowen tells his 803,000 YouTube subscribers that ETH/BTC could be in trouble if the Federal Reserve cuts rates in September and the pair follows the same pattern it did during the 2016 market cycle.
[adinserter block="1"]“What’s really interesting about 2016 is when you look at [the chart], it swept [the lows at 0.015 BTC] in June whereas this cycle it [swept the lows at 0.045 BTC] in May, about one month earlier.”
Cowen goes on to say that if ETH/BTC follows in the footsteps of a 2016-style capitulation, the pair might first rally to its immediate resistance at 0.056 BTC in August before revisiting support at 0.045 BTC in September should the Fed cut rates that month.
The analyst also predicts that a rate cut may trigger a collapse for the pair and send ETH/BTC to its cycle lows by the end of the year.
In December 2016, ETH/BTC dropped to as low as 0.00733 BTC before surging to record highs of 0.156 BTC a year later
At time of writing, ETH/BTC is trading for 0.0519 BTC worth $3,524.
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