Similar to Bitcoin (BTC), the price of Ethereum (ETH) has been trading largely sideways in recent times. In light of this downtrend, a well-known crypto analyst has shared insights regarding Ethereum’s price fluctuations, forecasting that over the next three months, the leading altcoin might reach a price low.
Ethereum Expected to Reach Price Low by December
Benjamin Cowen, founder of ITC Crypto and a respected crypto analyst, has released a YouTube video analyzing Ethereum’s price movements and pointing out a possible correlation between ETH’s price drops and the rising unemployment rates in the United States (US).
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Historically, the United States’ unemployment rate tends to peak in December, and Ethereum has reached a price low during this month in both 2016 and 2019. With the current rise in the US unemployment rate, Cowen suggests that this economic trend could lead to a peak in December 2024, potentially coinciding with a price low for Ethereum.
In recent months, Ethereum’s price has followed an unprecedented downward trend, plummeting by over 20% earlier this year and falling below $3,000. The cryptocurrency has mirrored Bitcoin’s price decreases, showing losses almost immediately after the wider market turned bearish.
Despite the introduction of Spot Ethereum Exchange Traded Funds (ETFs), ETH has struggled to build enough momentum to return its price to previous highs. Due to the ongoing decline trends for the cryptocurrency, Cowen predicts a potential 50% drop for Ethereum soon.
While the analyst acknowledged that the expected decline may not reach 50%, he strongly believes that some level of decrease, even if slight, is likely. Consequently, Cowen has established a new target for Ethereum’s price by December, estimating that the leading cryptocurrency could drop to $1,200 from its current value.
By comparing Ethereum’s price movements in 2019 and 2024, Cowen also proposed in an X (formerly Twitter) post that ETH could temporarily decline below its recently established wedge pattern before finding a price low. The analyst believes that once Ethereum achieves its price low, the cryptocurrency might be on the path to a significant price recovery.
As of this writing, CoinMarketCap’s data indicates that Ethereum’s price is trading at $2,354, showing a minor increase of 1.26% over the last 24 hours.
Increased Selling Pressures for ETH
In the midst of price drops and widespread market volatility, Ethereum has also seen an increase in selling pressures. On September 10, Lookonchain reported that MetaAlpha, a hedging and trading service firm, executed another substantial transaction involving a deposit of 10,000 ETH tokens valued at $23.45 million.
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In the past four days, the company has transferred a total of 33,589 ETH, worth approximately $77.55 million, to the Binance cryptocurrency exchange. At the same time, the Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, recently sold another 100 ETH tokens, bringing its total ETH sales since January to 2,616 ETH.
Featured image created with Dall.E, chart from Tradingview.com
