Amidst the ongoing volatility in the cryptocurrency market, the focus is primarily on the top cryptocurrencies. Many believe that the upward movement of these top coins brings activity to the market and injects money into it. However, a well-known analyst has expressed pessimistic views about Ethereum, the leading altcoin.
Will Ethereum’s Value Decrease?
Benjamin Cowen, a renowned cryptocurrency analyst, has issued a warning that Ethereum (ETH) could experience a significant decline in value. Cowen highlighted that Ethereum has fallen below the Market Support Band (BMSB), which is an indicator that uses the 20-week simple moving average and the 20-week exponential moving average to determine the direction of an asset’s trend.
According to Cowen, Ethereum’s price has experienced significant drops during two previous instances when it closed below the BMSB. His comments have raised various questions and concerns among investors, especially during a period of market uncertainty.
What is the Current Price of Ethereum?
Earlier today, the price of Ethereum briefly exceeded $3,000 but has since dropped to $2,950 at the time of writing. This decline in price has also resulted in a decrease in the market cap, which stands at around $350 billion.
Despite the price drop, the 24-hour trading volume has increased by 5%, reaching $14 billion. As a result, Ethereum is currently the third most traded coin in the market.
Additionally, Cowen mentioned that he anticipates the Ethereum/Bitcoin (ETH/BTC) pair to reach its lowest point in the following weeks. However, he believes that it may take more time for the ETH/USD pair to establish a bottom.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a certain level of risk. Therefore, it is advisable to conduct thorough research before making any investment decisions.
