Cryptocurrency analyst Benjamin Cowen is sounding the alarm on Ethereum (ETH), suggesting that a potential downturn in the stock market could lead to a retest of lower price levels for the popular cryptocurrency.
In a recent video shared with his extensive YouTube following of over 889,000 subscribers, Cowen delves into the correlation between the S&P 500 and Ethereum, highlighting how weakness in the stock market could impact ETH’s price performance.
Cowen points out that historical trends indicate a possibility of continued weakness in the S&P 500 throughout April. This could potentially trigger a decline in Ethereum as well, as the two markets have shown a degree of interconnectedness in the past.
The analyst speculates on various factors that could contribute to this scenario, including tariff uncertainties and upcoming macroeconomic data releases in early to mid-April. These elements could create a bearish environment that might impact both traditional markets and cryptocurrencies like Ethereum.
According to Cowen’s analysis, Ethereum could see a drop to its logarithmic trendline, potentially reaching as low as $1,044, amidst recessionary pressures. However, he also suggests that ETH could eventually bounce back and reclaim the $3,000 level as a support level.
Cowen highlights a pattern on the ETH/USD weekly chart, noting a triple top formation that could potentially signal a deeper market correction. He speculates that a recession could be on the horizon, with Ethereum potentially experiencing a significant drop before a strong recovery phase.
As of the time of writing, Ethereum is trading at $1,909, showing a 4.7% increase in the last 24 hours despite the looming market uncertainties.
Cowen’s insights serve as a valuable reminder for investors to stay vigilant and consider the broader market conditions when making decisions about their cryptocurrency holdings. By remaining informed and proactive, traders can navigate potential market fluctuations and position themselves strategically for long-term success.
For more updates and analysis on cryptocurrency trends, be sure to follow reputable sources like Benjamin Cowen and stay informed on the latest developments in the digital asset space.