Crypto analyst Benjamin Cowen anticipates a considerable decline still in store for Ethereum (ETH) before it embarks on a resurgence towards new all-time highs.
In a recent YouTube presentation, Cowen reiterates his theory that ETH must first retrace to its “home,” a term he employs to illustrate the asset’s logarithmic regression trendline that reflects its fair value.
Addressing his audience of 786,000 subscribers, the analyst underscores how ETH has historically revisited this trendline before initiating its bullish upswings.
Cowen elaborates that the logarithmic regression band is a tool to monitor an asset’s fair value using data unaffected by market bubbles. He points out that the band’s central segment presently aligns at $934, with the lower portion at $644.
Furthermore, he highlights that in the prior cycle (in 2020), Ethereum actually dipped 33% beneath the regression band. This leads him to conclude that an appealing accumulation range for Ethereum would be within $400 to $600.
Cowen posits that it’s quite likely ETH will conclude the year at a lower valuation than its initial price, aligning with the pattern observed in 2019 when it started at $1,200.
As of the time of writing, ETH is exchanging hands at $1,635. The cryptocurrency, ranked second by market capitalization, has experienced an almost 1.75% decrease over the last 24 hours.
Read Also: Crypto Analyst Nicholas Merten Predicts Deterioration Ahead for Bitcoin and Ethereum
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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