In a video released yesterday, crypto analyst Benjamin Cowen conveyed his bearish stance on Ethereum (ETH), the dominant smart contract platform by market capitalization. Cowen forecasted a considerable decline in Ethereum’s price by year’s end.
According to a report by The Daily Hodl, Cowen posits that for Ethereum to witness any lasting upward trend, it first needs to “return home” to a lower valuation. He minimizes the importance of Ethereum’s recent 2X price surge, asserting that similar gains are readily achievable in the traditional stock market. Cowen insists that Ethereum has historically had to reach its lower regression band before experiencing any significant price increases. Per an analysis he conducted nearly a year ago, this “home” for Ethereum is situated between $600 and $800, based on his own model of logarithmic regression bands.
The analyst anticipates that Ethereum is highly likely to dip below $1,200 in the next two and a half months, and he does not exclude the possibility of it descending even further.
Cowen observes that Ethereum is currently striving to sustain its price levels in shorter time frames, covering just over a year. Nonetheless, he contends that it’s merely a matter of time before Ethereum breaches these levels, resulting in a return to its lower price brackets.
At the time of writing, Ethereum is trading at around $1,555, down 2.61% in the past 24-hour period.
Earlier today, Santiment disclosed that the wealthiest Ethereum addresses, both on and off exchanges, continue to accumulate more assets. With Ethereum’s market value just over $1,570, about 8.51% of the total Ethereum supply is presently stored in exchange wallets. Additionally, the top 10 Ethereum wallets that are not linked to exchanges have a substantial holding of 39.22 million ETH.
Featured Image via Midjourney
