Benjamin Cowen, a well-known cryptocurrency expert, has recently speculated that a single incident might cause Ethereum’s (ETH) value to fall significantly in comparison to Bitcoin’s (BTC).
The Daily Hodl reported earlier today that in a recent conversation with Crypto Banter presenter Ran Neuner, Cowen predicted that the ether/bitcoin exchange rate might collapse by more than 50% from its current value of 0.063 BTC, or $1,828.
Cowen has made his forecast based on the monthly chart pattern of a bearish double-top for the ETH/BTC exchange rate. According to this trend, investors would probably sell their ether to buy bitcoin at the peak of any surge. According to Cowen, we are now in a “massive distribution phase,” which is consistent with trends seen in prior cycles.
According to Cowen, the ETH/BTC exchange rate typically falls between June and December. Cowen speculates a collapse to 0.03 BTC ($871) is possible:
“Therefore, I anticipate that the Ethereum to Bitcoin exchange rate will drop to the 0.03 to 0.04 BTC range, which, if reached, might signal the end of the altcoin reckoning.”
Cowen suggests that a stock market pullback may have been the impetus for the recent steep drop in the ETH/BTC exchange rate. He drew comparisons to the situation in late 2017 when the ether to bitcoin exchange rate had fallen to.022 bitcoin. Many alternative cryptocurrencies failed to recover from a second slump to this point in 2018. Cowen posits that the current price action is following a similar trend and that another dip below 0.049 BTC is possible in the near future.
Cowen also warned that the ETH/BTC pair might continue to slide below this level before finding a bottom. He theorises that a seasonal drop in the S&P 500 may set off such an event.
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