CryptoQuant analyst believes Ether will take trip home for $1,000
Cryptoquant analyst Benjamin Cowen share An interesting Ethereum chart with some technical analysis that could give us a hint on an upcoming move that will bring Ethereum back to “home”.
ETH’s home
By “home” Cowen refers to the curved accumulation range that Ethereum reached during every correction and then bounced off of successfully. With the current downtrend on the market, Cowen expected a plunge to the accumulation range around $500.
While such a drop would be significant for Ethereum, it is not something the market has not seen before as Ether is already at 90% losses. Traditionally, significant declines in the accumulation range such as this attract more institutional investors, fueling a recovery rally in the market.
Expectedly, the community reacted ambiguously with the same investors being happy about the possibility of accumulating more coins for a lower price, while another part of the community assumed such a large drop would cause serious problems for the cryptocurrency’s future.
What’s up with Ethereum now?
Following the release of the merge date, Ethereum investors saw an improvement in sentiment around the coin and the market in general, but as time went on, macro conditions and events surrounding the industry caused a trend reversal.
In the last two weeks, Ether lost around 25% of its value, dropping below the local uptrend. The overall situation on the chart has not changed since the beginning of 2022 as the second-biggest cryptocurrency on the market entered a prolonged downtrend after topping out at $4,850.
At press time, Ethereum is trading at $1,485 and has lost about 0.3% of its value over the past 24 hours.
