As crypto markets seem to stay in a steady bear trend, well-known analyst, Benjamin Cowen voices his concern with Ethereum’s (ETH) performance in opposition to Bitcoin’s (BTC). By using the analysis of developing double-top patterns seen historically for ETH/BTC pair, Cowen forecasted a possible drop of more than 50%. This large-scale decline could potentially happen due to money holders looking to capitalize on rallies and exchange their ETH-holds for BTC, as observed in the past cycles.
The situation also may have an external contribution – namely a ‘seasonal’ retracement in S&P 500. Such drop, in terms of cryptocurrency, will go as and low as 0,03 BTC (roughly 900*) and thusly cost intervening investors over half of their investments. Although cautious of forecasting, Cowen’s analysis gives a clear indication to potential risks traders should keep in mind during volatile markets.
At the moment, such unreliable result will put many asklcoins into conclusive waters across the period od June to December only time (and trading) will tell what consequences follow that. The ongoing period of volatility in the regard to ETH’s standing against Bitcoin demands a no less than calculatedn risk management from traders.
