This article is also available in Spanish.
Just like Bitcoin (BTC), the Ethereum (ETH) price Ethereum has been moving significantly lately. Due to this downward trend, a legendary crypto analyst has given some insights into Ethereum’s price movements, predicting that over the next three months, the pioneering altcoin could see its price bottom out.
Ethereum expected to hit price floor by December
Benjamin Cowen, the founder of ITC Crypto and a prominent crypto analyst, has published a YouTube video discussing Ethereum price movements, highlighting a potential correlation between ETH price drops with the rising unemployment rate in the United States.
Related Readings
Historically, the unemployment rate in the United States tends to peak in December, and Ethereum has seen a low price during the same month in 2016 and 2019. With unemployment rates currently rising in the United States, Cowen suggests that a continuation of this economic trend could lead to a peak in December 2024, potentially coinciding with a price floor for Ethereum.
For the past few months, the price of Ethereum has been on a unusual downward trend, to crash by more than 20% earlier this year and falling below $3,000. The cryptocurrency had reflected Bitcoin price dropsbleeding red almost immediately after the broader market turned bearish.
Despite the launch of Ethereum Exchange Traded Funds (ETFs)ETH has failed to gain enough momentum to propel its price back to previous highs. Given the cryptocurrency’s considerable downtrend, Cowen predicts that Ethereum could soon see a 50% decline.
While the analyst admitted that the expected decline may not be as severe as a 50% drop, he remains confident that some degree of decline, even if slight, is likely. As a result, Cowen has set a New target for Ethereum price By December, they predict that the pioneer cryptocurrency could see its price drop to $1,200 from its current value.
While drawing parallels between Ethereum’s price movements in 2019 and 2024, Cowen further suggested in an X (formerly Twitter) job that ETH could temporarily fall below its recent level formed a wedge pattern before finding a price floor. The analyst believes that after Ethereum hits its price floor, the cryptocurrency could be on its way to a significant increase price recovery.
At the time of writing, data from CoinMarketCap reveals that the price of Ethereum is trading at $2,354, reflecting a slight increase of 1.26% over the past 24 hours.
Selling pressure increases for ETH
Amid price drops and general market volatility, Ethereum has also seen a increased sales pressureOn September 10, Lookonchain reported that MetaAlpha, a hedging and trading services firm, had executed another major transaction in a deposit of 10,000 ETH tokens valued at $23.45 million.
Related Readings
Over the past four days, the company has transferred a total of 33,589 ETH, worth around $77.55 million, to crypto exchange Binance. Meanwhile, the Ethereum Foundationa non-profit organization that supports the Ethereum ecosystem recently sold 100 more ETH tokens, bringing its total ETH sales since January to 2,616 ETH.
Featured image created with Dall.E, chart by Tradingview.com
