According to closely followed crypto analyst Benjamin Cowen, Ethereum (ETH) is set to make a significant move in the next three months.
Cowen tells his 784,000 YouTube subscribers in a new strategy session that ETH is trading within a large wedge pattern that could lead to a breakout by May of this year.
Cowen believes that the “deep value” zone for Ethereum, which he believes is between $600 and $1,000, is to the downside of the wedge.
“Eventually, it’s going to have to break out one way or another because this is sort of coming to an endpoint by May. So, by May, I expect us to either break to the upside or the downside. Of course, you know my preference; I’d rather see it return to the regression line [or] regression trendline because that’s ultimately where I believe the deep value can be found, just as it was found over here in 2018, just as it was found in 2020. So I think it’s worthwhile to keep watching.
Cowen also considers the strength of ETH in its Bitcoin pair (ETH/BTC). According to the popular analyst, ETH/BTC is approaching an inflection point, most likely next month, with the odds pointing downward. This will also come to a head sometime in March. Not only is the ETH/USD approaching a decision point in March and April, but the ETH/BTC valuation is approaching a similar stage. Another way to look at the ETH/BTC valuation that I thought was worthwhile was to not just measure the price relative to Bitcoin because supply is, of course, changing. Why don’t we divide the market cap of Ethereum by the market cap of Bitcoin?
When I look at it in this upper range, I can’t help but wonder if it’s not just like this , where it has this sort of distribution phase in this upper region before breaking to the downside.”