- Benjamin Cowen, a popular cryptanalyst, has expressed bearish sentiment on Ethereum
- The crypto strategist has predicted a prolonged period of market correction for the native token of the leading smart contract platform.
speaking in a video Posted on his YouTube channel on Monday, Cowen reviewed Ethereum’s recent behavior around the bull market support band. He noted that Ethereum faced rejection at the support band, arguing that its price is becoming a cause for concern.
The Bull Market Support Band is a moving average indicator that integrates the 20-week Simple Moving Average (SMA) and the 21-week Exponential Moving Average (EMA).
Ethereum did not even reach the 21-week exponential moving average before resuming the decline, which the crypto strategist called a sign of weakness. He added that in the absence of a short-term macro run (in response to the rejection) to negate the dips, ETH is likely to revisit the previous low or set a lower low. He opined that there is a higher probability of the latter happening.
Cowen also focused on the ETH/BTC trading chart, which he noted also pointed to a bearish outlook. The crypto analyst explained that the pair had also been rejected and was unable to recover its support band from the bull market.
He further noted that since Bitcoin has historically performed better in bearish conditions than ETH (Ethereum is more rejected), the former is likely to gain dominance over the latter in this market.
This is not the time to buy the fall
Cowen acknowledged that although popular sentiment would be to buy the dip, bearish indicators indicate the slide could continue. He warned that currently it is not a good strategy to buy.
Furthermore, the crypto strategist predicted that Ethereum’s bearish price level could eventually drop below $2,000 to retest the $1,700 price point.
For Ethereum to start looking up again, Cowen advanced that the market needs to see some kind of high volume “important capitulation”. He also suggested that Bitcoin should break above its bull market support band and retain it as support. That would be an optimistic sign.
Ether, as of this writing, is trading at $2,330, down more than 13% in the last 24 hours. The recent drop has been attributed to tensions in Ukraine after Russian President Vladimir Putin announced military action.