Ethereum (ETH) has always maintained its position as a leading competitor currency. However, a recent analysis by Benjamin Cowen suggests that its journey may follow a better trajectory, at least compared to Bitcoin (BTC)
Ethereum (ETH) has always maintained its position as a leading competitor currency. However, a recent analysis by Benjamin Cowen suggests that its journey may follow a better trajectory, at least compared to Bitcoin (BTC).
In the space where past trends can sometimes predict future outcomes, ETH's price behavior provides a potential concern compared to BTC.
The stumbling blocks of Ethereum in 2023
Benjamin Cowen, the leader of the encrypted analysis community, stated in a YouTube video that he lacks enthusiasm for ETH's performance in 2023. ETH/BTC valuation is a key indicator of relative performance and the basis of his statement.
Based on his observations of monthly charts, Cowen's analysis mainly revolves around ETH/Bitcoin valuations, which are currently showing a downward trend.
Ethereum/Bitcoin (ETH/BTC) prices show a downward trend on the 1-month chart.
This analyst cited the model from 2019 (the year before the halving), where the value of ETH relative to BTC significantly decreased. In that year alone, ETH/BTC valuation decreased by approximately 49%.
Analysts say that by 2023, ETH's relative valuation has plummeted by 20.56%. If Cowen's prediction and the 2019 model are true, then Ethereum may fall into a deeper abyss.
However, the situation is not entirely bleak. Cowen remains cautious as he acknowledges that the nature of 'mergers' has brought changes to the Ethereum ecosystem and believes that it is a' game changer '. Although Cowen is not very optimistic, the analyst did not predict the next trend of ETH, mainly due to the unpredictable chain reaction brought by the merger.
Merge: A variable that changes the rules of the game?
This merger is a highly anticipated Ethereum upgrade that has had a significant impact on ETH/BTC valuation. The weekly chart of Ethereum has been in a continuous downward trend since its implementation, and has set further lows.
Ethereum/Bitcoin (ETH/BTC) prices are showing a downward trend on the 1-day chart.
Cowen recognizes that mergers and their deflationary components may mean that ETH may not follow its historical path. This deflationary aspect may be a wildcard of Ethereum, making its trajectory more elusive.
It is worth noting that although there may be many similarities between 2019 and 2023, updates such as "mergers" mean that Ethereum's journey this year may still bring some surprises.
At the same time, Ethereum prices have shown a quite bearish trend against the US dollar exchange rate, especially in the past week. The second largest cryptocurrency by market value has plummeted by nearly 5% in the past 7 days, causing its price to fall below $1600 and currently trading at $1569.
Ethereum (ETH) prices are organized horizontally on a 4-hour chart.
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