Benjamin Cowen Predicts Ethereum/Bitcoin Ratio ‘About to Collapse’ – But There’s a Big Catch
Prominent crypto analyst Benjamin Cowen has been tracking the ETH/BTC chart closely this year. Back in June, Cowen predicted that the ETH/BTC ratio was “about to collapse.” Four months later, Cowen says the collapse is continuing, though more slowly than he initially expected.
“The trend has in fact been down for a long time,” Cowen tweeted on October 7th. The ETH/BTC ratio has been declining since its peak in May 2021, indicating Bitcoin has been outperforming Ethereum in recent months.
Other traders in the crypto community seem to agree with Cowen’s analysis. One trader predicted Ethereum could fall as low as $1410 before finding support. This highlights overall bearish sentiment around Ethereum’s short-term prospects.
#ETH / #BTC collapse continues. It has been a pretty slow process so far (certainly slower than I was expecting), but the trend has in fact been down for a long time. pic.twitter.com/JbbuXKdOTh
— Benjamin Cowen (@intocryptoverse) October 6, 2023
However, the long-term picture may be more favorable for Ethereum. The next Bitcoin halving is scheduled for April 2024, which has historically marked the start of a new bull market cycle for crypto assets. Some analysts, and CaptainAltcoin’s analyst team is among them, believe Ethereum could begin to outpace Bitcoin again as we approach the next halving. Reports indicate that Ethereum’s native cryptocurrency, Ether (ETH), gained a respectable 418% in 2021 Bull Run, which is six times the return for Bitcoin.
If past market cycles are any indicator, Ethereum may outperform Bitcoin as a long-term investment during the next cryptocurrency bull run.
Ethereum is a programmable blockchain that finds application in numerous areas, including DeFi, smart contracts, and NFTs. Whereas the purpose of the Bitcoin blockchain is to process transactions and store value, Ethereum is a platform that goes beyond just enabling a digital currency.
While Bitcoin is still the top dog in crypto, Ethereum has a chance to gain ground during the next cycle thanks to its ongoing development and upgrades. Cowen’s chart analysis shows Ethereum is currently underperforming, but the tide could turn in ETH’s favor within the next 18 months.
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