Ethereum May Face a Deeper Correction Before 2025, Predicts Analyst Benjamin Cowen

In the ever-volatile world of cryptocurrencies, Ethereum (ETH) has been a focal point for many investors and analysts. Recently, Benjamin Cowen, a respected crypto analyst, shared his insights on Ethereum's future price movements in an interview on the Bankless podcast. According to Cowen, Ethereum could be on the brink of a significant correction before it finds its footing for a rally at the start of 2025.

• Key Takeaways:
  • Ethereum is expected to dip more than 48% from its current value.
  • The correction could occur before the end of this year, with recovery starting in 2025.
  • A recession could potentially alter this prediction, indicating all bets are off in such a scenario.

Cowen elaborates on his prediction, suggesting that the ETH/USD pair might maintain its position above the $2,000 mark for a bit longer. However, he anticipates a drop below this threshold in the fourth quarter of the year, followed by a recovery starting next year. This outlook hinges on the broader economic landscape, particularly the possibility of a recession, which Cowen admits could significantly impact his predictions.

"My hope is that the Fed has not absolutely wrecked the markets for a long time. The caveat to this is that what happens if we deviate off the four-year cycle? And that’s always a possibility. If we get a recession or something that could change things. And then all bets are off," Cowen explained.

He also drew parallels between Ethereum's current situation and its historical performance in 2016 and 2019, noting that ETH has previously followed a logarithmic trend line during these periods. Cowen suggests that ETH could potentially dip to $1,200 before experiencing a bullish reversal, mirroring these past patterns.

The current trading price of Ethereum stands at $2,342, marking a nearly 5% decrease over the last week. This dip aligns with Cowen's predictions of a near-term correction before Ethereum potentially embarks on a more substantial recovery phase.

Cowen's analysis serves as a reminder of the inherent uncertainties and volatile nature of the cryptocurrency market. Investors and enthusiasts alike will be watching closely to see if Ethereum's journey mirrors Cowen's predictions or if unforeseen economic factors lead to a deviation from this expected path.