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Cryptocurrency analyst Benjamin Cowen has warned investors that the price of Ethereum ETH/USD could crash more than 65% during the bear market due to at least one major economic concern.
Addressing his over 779,000 followers on YouTube in a strategy session, Cowen said the world’s second-largest cryptocurrency by market capitalization might fall more than 65% from its current level of $1,180.
“I do think you’re still looking at a leg lower here on Ethereum’s valuation against the U.S. Dollar. I think around that $400-$600 range is a good spot to begin looking for that same type of value that we saw in the last cycle.”
The social risk metric, which measures retail interest in the market by counting the number of people who watch cryptocurrency YouTube channels and follow accounts on Twitter devoted to digital assets, is another area that Cowen is closely monitoring.
Ethereum Preparing For A Major Sell-Off Event
The social risk index for Ethereum, according to Cowen, indicates that ETH is preparing for another sell-off event.
“I still think Ethereum is likely looking at lower prices eventually. I think this is supported by the idea of social risk. Social risk is finally putting in new lows. When the social risk is going down typically the Bitcoin dominance goes up,” he said.
“As a social risk plummets like it did back over here in 2018, that was where Ethereum took its next leg down,” he added.
Moreover, according to Cowen, the risk of a recession is an additional bearish factor, as the Federal Reserve continues a hawkish monetary policy.
“I understand that you know a $600 Ethereum or even a $400 Ethereum is another 50% correction or more from these levels. But I do think there is reason to think that it could happen, not only from a price perspective and a technical perspective,” Cowen says.
“And I know there’s sort of the fundamental idea of all the Ethereum that’s been burned and whatnot. But the other side of it is that we are looking at a recession. If a recession is coming, it’s likely not a good thing for risk assets like cryptocurrencies,” he adds.
Next: Analysis: Will Binance Succumb To Crypto Market Fears?
Photo: Courtesy of Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.