A prominent crypto analyst has issued a cautionary message to Ethereum (ETH) investors, predicting that the cryptocurrency could experience a significant downturn as early as this month. In a recent update to his extensive following of 928,000 subscribers on YouTube, trader Benjamin Cowen highlighted concerns surrounding the second-largest cryptocurrency by market capitalization.
Cowen projected that Ethereum could see a dip that might take it below the $4,000 mark in the coming weeks. He anticipates a potential drop of around 30% from recent highs, although he clarified that this plunge is not expected to originate from current price levels. Instead, he estimates a more immediate decline of approximately 20%.
Despite these bearish projections, Cowen expressed optimism about Ethereum’s longer-term recovery. He pointed out that this potential correction would likely pave the way for a rebound. “My expectation right now is that Ethereum will go back up, but not before it tags that 21-week EMA (exponential moving average),” he stated, speculating that this scenario could unfold by late September or early October.
According to Cowen, the anticipated price drop would likely place Ethereum in the range of $3,400 to $3,600 before it is poised to reach new all-time highs. This forecast serves as a reminder for investors to approach the market with caution, particularly given the current volatility.
Additionally, Cowen emphasized the importance of focusing on a limited number of trade ideas rather than spreading interest thinly across numerous altcoins. He provided insights into his investment strategy, explaining, “You don’t need to track like a thousand different altcoins. You just need a good trade idea here or there… You can make a lot of money on a single idea.”
At the time of his update, Ethereum was trading at approximately $4,289, indicating a slight increase in the preceding 24 hours. Investors remain vigilant as they navigate the uncertainties in the cryptocurrency market, and many are weighing the implications of Cowen’s analysis in their trading strategies.
As always, experts urge investors to conduct their own research before making decisions in the high-risk landscape of Bitcoin, cryptocurrency, and other digital assets.
