While volatile price movements in cryptocurrencies continue, all eyes seem to be on the top cryptocurrencies. It is widely believed that the rises at the top of the list bring activity to the market and subsequently revive the market with the flow of money. Amid such expectations, a famous analyst made rather bleak comments about Ethereum, the king of altcoins.
Will Ethereum Drop?
Benjamin Cowen, one of the widely followed cryptocurrency analysts, warned that Ethereum (ETH) could experience a significant drop in value.
In his statements on YouTube, Cowen noted that Ethereum has fallen below the Market Support Band (BMSB), an indicator composed of the 20-week simple moving average and the 20-week exponential moving average used to determine whether an asset is in an upward or downward trend.
The last time Ethereum fell below the Bull Market Support Band was about 30 weeks ago. Or the last time it fell below its 20-week simple moving average was about 30 weeks ago. So, quite some time has passed, and now we have fallen below this band once again.
According to Cowen, Ethereum’s price had significantly dropped in two previous instances that were very similar to the current period when the second-largest crypto asset closed below the BMSB.
In both cases, after falling below the Bull Market Support Band, Ethereum/USD dropped by about 50%…
…From here (around $2,970), a 50% drop would bring ETH down to around $1,400.
Such comments during days of market uncertainty have caused significant questions and concerns among investors.
What is Ethereum’s Price?
Early in the day, Ethereum returned above $3,000 but has since fallen back to $2,950 at the time of writing. Parallel to this price drop, the market cap has also fallen to around $350 billion.
The 24-hour trading volume rose to $14 billion after a 5% increase, positioning it as the third most traded coin.
On the other hand, Cowen stated that he expects the Ethereum/Bitcoin (ETH/BTC) pair to bottom out in the coming weeks, but the ETH/USD pair may take longer to form a bottom.
