In the world of cryptocurrencies, closely followed analyst Benjamin Cowen believes that Ethereum (ETH) may have hit rock bottom against Bitcoin (BTC) in terms of the trading pair (ETH/BTC). The analyst warned that the bottom might be lower.
Ethereum May Have Bottomed Against Bitcoin
In his latest video update to his YouTube subscribers, Cowen indicated that the ETH/BTC trading pair might have hit a cycle bottom at the 0.04 BTC level. However, the analyst also emphasized that based on historical data, there is a possibility for ETH/BTC to fall below the 0.04 BTC level.
Cowen predicts that even if this possibility occurs, the trading pair will recover and rise from this level. Cowen reminded, “I think the Ethereum/Bitcoin pair will bottom between 0.03 BTC and 0.04 BTC, and the 0.04 BTC level has already been seen, but there is still a risk of Ethereum/Bitcoin falling below 0.04 BTC.”
Recalling Past Cycles
Cowen observes similar patterns in today’s cycle that ETH/BTC exhibited in the past two cycles. In both 2016 and 2019, the ETH/BTC trading pair made monthly closes at bottom levels on the chart, then saw lower levels the following month before rising.
The analyst recalled these historical examples by saying, “Similar situations occurred in the past two cycles. In 2016, the ETH/BTC trading pair made a monthly close below the bottom level, but this close did not represent the lowest level for ETH/BTC. The actual bottom occurred the following month.”
The analyst’s analysis increased uncertainty about the short-term movements of the ETH/BTC trading pair. Currently, ETH/BTC is trading at 0.045 BTC and has risen by 1.59% in the last 24 hours.
Along with all this, Cowen’s analysis contains important clues for cryptocurrency investors. The potential bottom region of Ethereum against Bitcoin is a situation that investors should closely monitor.
