On Friday (16 December 2022), crypto analyst Benjamin Cowen shared his thoughts on price action of the second most valuable cryptocurrency (by market cap).
According to a report by The Daily Hodl, in a video update released yesterday, Cowwen told the 779K subscribers of his YouTube channel:
“I do think you’re still looking at a leg lower here on Ethereum’s valuation against the US dollar. I think around that $400-$600 range is a good spot to begin looking for that same type of value that we saw in the last cycle...
“I still think Ethereum is likely looking at lower prices eventually. I think this is supported by the idea of the social risk…
“I understand that you know a $600 Ethereum or even a $400 Ethereum is another 50% correction or more from these levels. But I do think there is reason to think that it could happen, not only from a price perspective and a technical perspective. And I know there’s sort of the fundamental idea of all the Ethereum that’s been burned and whatnot. But the other side of it is that we are looking at a recession.”
Around two weeks ago, during an interview on “Altcoin Daily”, Cowen had this to say about Ethereum:
“The worst case scenario would be dependent on how bad this potential recession ends up being. It’s hard to know exactly how that’s going to affect crypto, but I would say for Ethereum, the main levels I’m watching are the $400-$600 range... I don’t know if it’s going to go all the way down to $400, but I do think a $600 ETH is potentially in the cards mainly because I think there’s a lot of evidence to suggest that it’s about one cycle behind Bitcoin in terms of volatility.
“[ETH’s] first cycle [was] a solid 95% bear market and Bitcoin’s first bear market was 94%. Bitcoin’s second bear market was around 87% so if Ethereum goes down 87% from its all-time high this time, or even 88%, that’s gonna put it at just below $600, so I think there’s a case to be made that Ethereum could have this final capitulation down into the $400-$600 range.“
According to data by CryptoCompare, $ETH is currently (as of 12:53 p.m. UTC on 17 December 2022) trading around $1,179, down 2.88% in the past 24-hour period.
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