Cryptocurrency analyst Benjamin Cowen says he expects Ethereum (ETH) to correct sharply below the $1,000 level.
In a new strategy session, Cowen told his 790,000 YouTube subscribers that historically, ETH often “tests the safety” of major cycle lows at least twice before moving into a new bull phase.
The analyst notes that cycle lows in 2015, 2016 and 2020 have been retested, and says another low in 2022 has yet to be retested.
Cowen expects the Ethereum price to collapse first into Bitcoin (ETH/BTC) before ETH/USD follows suit, likely this year.
“What I am proposing is that at some point in the next few months, ETH/BTC will collapse. After ETH/BTC collapses, ETH/USD will collapse.
One thing you might notice about ETH/USD is that it tends not to make a low and then never test the safety of that low. Look at all the previous examples…
So, at some point, I think Ethereum will test the safety of this low, falling below $1,000. But history also suggests that it will not be tested until after the ETH/BTC collapse. History also suggests that ETH/BTC probably won't collapse in January because January is usually a good month for Ethereum.
It could still take a while given these halving narratives, given the ETH spot ETF, given the halving narratives, it could take a while for that to happen.
At the time of writing, Ethereum is trading at $2,268.
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