In the last month, the price of Ether has not been experiencing a successful period. The impacts of the geopolitical tensions between Russia and Ukraine are the major reason behind the problems being experienced in the crypto industry. To be specific, cryptocurrencies such as Ether, Bitcoin, Cardano, Polygon (MATIC), Shiba Inu, Litecoin, and others have seen more than 20% of their market capitalization wiped out.
Analysts predict losses for ETH
Many crypto analysts and executives have analysed the trends in the crypto market and are predicting more losses for ETH traders and investors. Notably, Benjamin Cowen shared his price expectations for ETH with his YouTube subscribers and it’s not very good news for the Ethereum holders. Luckily, you can also go short in Ethereum with help of CFDs if you live outside the U.S with websites such as Poloniex or AvaTrade. The latter even have an insurance for losses, called AvaProtect, that you can enable for 3 hours, 6 hours or even more.
This Crypto Lists post will discuss what Cowen claimed about the smart contract platform and the reasons why he believes that its correction shows significant weaknesses. Read on to find out more about how Ethereum been showing weakness lately.
What Exactly Did Benjamin Cowen Say in His Latest YouTube?
According to a renowned cryptocurrency analyst, Benjamin Cowen, the Ethereum correction has not been completed yet. In a video post he uploaded on YouTube on February 21st, 2022, Cowen informed his 715,000 subscribers that he was monitoring the reaction of Ethereum closely as it initially was approached a bullish market trend.
The bullish market support band, in this case, is the technical indicator that combines both the simple moving average in the 20th week and the exponential moving average (EMA) in the 21st week. In the video post, he claims that the ETH’s selling pressure is quite strong. With other words, he probably believes more in short selling Ether right now than going long.
When you zoom in further into the graph, you will notice that the price of ETH did not reach its 21-week EMA before rejecting.
According to Benjamin Cowen, he believes that the inability of ETH to attain the bullish market support band before it resumes with the downtrend is a sign of weakness.
Cowen is also looking at the ETH/BTC pair with a keen eye since the pair is showing signs of being bearish after being unable to regain their bull market support band. Since the bullish marker has failed to retrace its support band, the ETH/BTC pair is being rejected by the bullish market.
The crypto analyst says that he’s having a hard time processing it but it looks very possible. He says that he isn’t certain whether he can say “Bitcoin is bullish” or “Ethereum is bullish” – since none of them is trending at the moment.
What About the Price of Ether?
According to live data from Crypto Lists, ETH’s value is $2385.4 as of February 24th, 2022. However, Benjamin Cowen told his YouTube subscribers that the value of this smart contract platform could go as low as $2,000 which is quite on the downside. Presently, Ethereum is trading in its macro range – between $1,700 and the psychological level of $4,000. But Cowen is claiming that there’s a high likelihood that ETH would reverse this progress and dip to the lowest range (about $1,700).
Why are the Latest ETH predictions Scaring CEOs and Crypto Investors?
Many renowned CEOs, business analysts as well as crypto traders and investors are worried about the negative trend that ETH is presently experiencing.
Melbin Thomas, who is the CEO of the crypto social network, Sahicoin, recently said that the technical indicators show that the price of ETH will reach $1,700. At the moment, the weekly support is at $2,000, but this figure is destined to drop below this point.
The CEO of auto-trading cryptocurrency exchange Mudrex, in an interview, reiterated what was said by Melbin Thomas. He claimed that ETH is presently showing numerous strong levels of support which were estimated to be between $1,850 and $2,200, but could even drop towards $1,500. Are we entering the perfect shorting opportunity for ETH when
Therefore, the bearish momentum that ETH is experiencing now is likely to deepen. The vice president of strategy at EarthID, Sharat Chandra said in an interview that he is expecting Ethereum to maintain its downward price movement.
That said, the bearish trend that ETH is currently experiencing will have an impact on the buying and selling behaviour of its traders and investors. This is made even made worse by the ongoing conflicts between Russia and Ukraine as people are liquifying their assets in anticipation of what is to come.
However, if ETH continues with its downward price movement, it would present buyers with the perfect opportunity to buy; which in turn, will increase its value in the long-term.