dailyhodl.com
A widely followed crypto analyst is issuing a warning to investors, saying that top altcoin Ethereum ($ETH) might see a crash in December.
In a new strategy session, prominent crypto trader Benjamin Cowen tells his 869,900 followers on the social media platform X that based on historical patterns, the second-largest digital asset by market cap may drop during the end of the year, reaching its lowest point in December.
“In 2016, $ETH had big drops in April, August, and December. In 2024, $ETH has had big drops in April and August. So decent chance it plays out in a similar fashion, with one more drop by $ETH before EOY (end-of-year), with the low in December.”
Ethereum is trading for $2,517 at time of writing, a marginal decrease during the last 24 hours.
Cowen goes on to note that the $ETH/$BTC pair could start to dip around the same time and could fall to as low as 0.036 if its support around 0.038 does not hold.
“$ETH/$BTC just took out the prior low. As I said, if 0.038 does not hold, 0.036 is likely the next stop. Structurally, I think the low will be in before EOY (2nd week of January at the latest). Next likely target if 0.038 fails is the 2016 high of 0.036. As I have said for three years, the low this cycle is likely between 0.03-0.04.”
$ETH/$BTC is currently valued at 0.0372.
According to Cowen, the $ETH/$BTC pair won’t hit its low until it fails to get above its 50-day simple moving average (SMA).
“As I said a month ago, as long as $ETH/$BTC fails to get above the 50-day SMA, it makes sense to assume the low may not be in. In 2016 and 2019, once the actual low was in, $ETH/$BTC had a strong move above the 50-day SMA (still something that has not yet happened).”
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