Analysts predict that ETH/BTC will bottom in Q4 2024 and Ethereum will face a short-term downturn before potentially recovering in 2025.
Ethereum price is at a key point testing the $2,700 resistance zone after rising more than 10% over the past week. This important milestone has attracted the attention of analysts predicting potential price movements.
Despite recent price gains, market watchers expect Ethereum to face further declines by the end of 2024. Benjamin Cowen, CEO of Into the Cryptoverse, focuses on the long-term movement of the ETH/BTC pair.
ETH/BTC breakdown and historical similarities
Cowen has been vocal about the relationship between Ethereum and Bitcoin, with the ETH/BTC pair having fallen significantly from last year's levels. He noted that while many were once bullish on Ethereum reversing Bitcoin's dominance, current trends show Ethereum weakening in comparison.
when I said that #ETH / #BTC Last year, when Bitcoin was on the verge of collapse, many were flipping and deriding the idea that Bitcoin's dominance could reach 60%.
Now, many of those same people are anti-ETH and calling for an end at 0.038. lol. If you are bullish… https://t.co/rwqj5u4n8A pic.twitter.com/YndrSgMfdK
— Benjamin Cowen (@intocryptoverse) October 17, 2024
https://x.com/thecryptabasic
According to Cowen, the ETH/BTC ratio, which is currently hovering between 0.03 and 0.04, is likely to bottom this quarter. This range is a historically important support zone, and Cowen suggests that even in a worst-case scenario, the ratio could only fall to 0.03.
But he points out that the time to take advantage of this trade was two years ago, and warns against the current panic selling.
Cowen also mentioned Ethereum's price history, specifically its similar breakdown in Q4 2016 and Q4 2019. ETH/BTC experienced a significant decline. During these periods, Ethereum briefly weakened, but eventually regained strength.
According to Cowen, ETH/USD is expected to continue declining until the end of 2024, similar to the declines in ETH/BTC in 2016 and 2019. However, analysts predict that Ethereum could recover and gain new strength in 2025.
Possibility of bullish reversal
He expects a downturn similar to past market cycles, but others like Peter Brandt see it that way. potential Toward a bullish reversal. A veteran market analyst recently identified a possible bullish development for Ethereum.
According to Brandt, an inverted head-and-shoulders (H&S) bottom pattern is starting to form on the Ethereum price chart, which could signal a reversal of the current downtrend.
left shoulder formed In late July, the price of Ethereum fell to $2,330, followed by a plateau in September, when it fell to a low of $2,253. A right shoulder started to form in early October, and the price declined but remained above $2,330, indicating that bearish momentum was weakening.
However, this pattern is incomplete without a breakout above the neckline and is currently acting as resistance. If Ethereum can break through this level, it could signal a significant price increase.
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