Benjamin Cowen, a popular crypto analyst, has expressed bearish sentiment on Ethereum
The crypto strategist has predicted an extended period of market correction for the native token of the top smart contract platform
Speaking in a video published on his YouTube channel on Monday, Cowen reviewed Ethereum’s recent behaviour around the bull market support band. He observed that Ethereum faced rejection at the support band, arguing that its price is becoming a cause for concern.
The bull market support band is a moving average indicator that integrates the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
Ethereum did not even actually reach the 21-week exponential moving average before it resumed the slump, which the crypto strategist labelled a show of weakness. He added that in the absence of any macro run in the short term (in response to the rejection) to negate the declines, ETH is likely to revisit the prior low or set a lower low. He opined that there is a higher likelihood for the latter to happen.
Cowen also brought to focus the ETH/BTC trading chart, which he noted was also pointing to a bearish outlook. The crypto analyst explained that the pair had also been rejected and failed to regain its bull market support band.
He further pointed out that as Bitcoin has historically performed better in bearish conditions than ETH (Ethereum gets rejected harder), it is likely that the former gains dominance over the latter in this market.
This is not the time to buy the dip
Cowen acknowledged that even though the popular sentiment would be to buy the dip, bearish indicators mean that the dip might just keep dipping. He cautioned that it’s currently not exactly a good strategy to buy into the trader pain.
Furthermore, the crypto strategist predicted that Ethereum’s bear price level could eventually land below $2,000 to retest the $1,700 price point.
For Ethereum to start looking up again, Cowen advanced that the market must see some type of high-volume “major shakeout capitulation.” He also suggested that Bitcoin jumping above its bull market support band and retaining it as support could be another sign of life.
Ether is, as of writing, trading at $2,330, down more than 13% in the last 24 hours. The recent plunge has been ascribed to tensions in Ukraine after Russian President Vladimir Putin announced military action.