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Ethereum price returned above the $3,800 price level thanks to a 5% increase in the last 24 hours. Interestingly, this Ethereum price increase occurred in the midst of a simultaneous increase in the performance of ETH compared to BTC in recent weeks.
According to crypto analyst Benjamin Cowen, this recent price action could actually be the first step in Ethereum’s price increasing against Bitcoin over the next six to 12 months.
Analyze the ETH/BTC pair
The last two weeks were marked by consolidation of Bitcoin price below the $99,000 price level as investors continued to wait for a breakout above $100,000. Amid this Bitcoin price correction, Ethereum price triggered a notable increase from the $3,340 level on November 26. This rally has allowed Ethereum and many other altcoins to outperform Bitcoin, leading to speculation about whether the crypto market is now trending. initial phases of a long-awaited altcoin season.
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According to technical analysis According to popular crypto analyst Benjamin Cowen, this could be the first step of recovery for the ETH/BTC pair. Speaking to social media platform
Back in 2023, Cowen predicted a substantial decline in the ETH/BTC pair. At the time, the ETH/BTC pair was trading around 0.066, but he predicted it could fall more than 45% at this point. Interestingly, this prediction came true as Ethereum’s valuation relative to Bitcoin has been declining since the last quarter of 2023 until recent weeks.
Fast forward to December 2024; Ethereum has rebounded and is performing well against Bitcoin. Notably, the ETH/BTC pair currently sits around 0.0396, up 24% from the 2024 low of 0.03187. This resurgence prompted Cowen to re-examine the ETH/BTC pair, and his outlook turned positive.
Historical trends suggest seasonal rebound
Cowen highlighted Ethereum’s historical trends, noting that the ETH/BTC pair often gains momentum in December or January. If this trend continues and the ETH/BTC pair gains momentum in December, Ethereum could already be in the early stages of recovery. However, if we were to wait until January, a sweep of the previous lows at 0.03187 and possibly 0.03 remains possible but increasingly unlikely. He added that within a few months the exact background could become irrelevant.
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Looking ahead, Cowen sees a 6-12 month horizon for significant gains in the ETH/BTC pair. Such a move would be highlighted by Ethereum price outperforming Bitcoin price and a full altcoin season.
At the time of writing, Ethereum is trading at $3,845. Bitcoin, on the other hand, finally broke above the $100,000 mark and is currently trading at $103,000. The ETH/BTC pair is currently trading at 0.03755.
Featured image created with Dall.E, chart from Tradingview.com
