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Famous crypto analyst Benjamin Cowen made a confusing comment about Ethereum (ETH), stirring fear in the market. According to Cowen, ETH could host more declines in search of a local bottom. Cowen suggests that there is a possibility for ETH to fall below the $1,000 level, and such a drop would be in line with ETH’s historical patterns.
Will ETH Really Fall Below $1,000?
Investors and traders continue to closely monitor the market following the approval of spot Bitcoin exchange-traded funds (ETFs) in the USA. It seems that Ethereum’s price is also being closely watched during this process.
ETH, known as the king of altcoins in the crypto world, had climbed to its highest level of the year at $2,720 following the approval of the spot Bitcoin ETF, but later could not withstand the Bitcoin downturn and retreated.
The analyst, who stated that he examined the situation from a technical standpoint, argued that according to historical analysis, ETH needs to fall before starting a new rise. While making this statement, Cowen specifically pointed out the years 2015, 2016, and 2020, noting that the low level seen in 2022 has not yet been repeated.
The analyst made the following statement to the crypto world via YouTube:
That’s why I think at some point Ethereum will test the integrity of this low level and will drop below $1,000. However, history also shows that it will not test this until ETH/BTC falls. History also indicates that ETH/BTC is unlikely to fall in January because January is usually a good month for Ethereum.
In addition, he added that the expectation of a spot Ether ETF, which is increasingly gaining strength among investors, and the Halving event expected to occur in Bitcoin in April, could delay this decline.
According to expert commentary, the clarity following Bitcoin ETFs may have paved the way for spot ETH ETFs, which could accelerate the approval process.
Is It Time for Spot ETH ETFs?
BlackRock, Fidelity, Grayscale, and Cathie Wood’s ARK Invest seem to have turned their eyes to ETH after Bitcoin. In this context, these companies are waiting for approval from the regulatory body, the SEC, for ETH ETFs. However, the SEC recently dashed the companies’ expectations for the time being and postponed the decision on the ETFs.
Although such delays could postpone the ETH rally, a potential approval by the SEC could drive the ETH price to new highs.
While all this is happening, the price of ETH seems to be on the rise after the price of Bitcoin surpassed the $43,000 level. As of the time of writing, ETH is trading at $2,308, up 2.17%. On the other hand, the RSI value, which indicates 64.75, is another indicator of how strong the buyers still are.
