Benjamin Cowen Predicts Ethereum Could Drop Another 30%, Totaling a 70% Decline in Q4 2024
Ethereum, despite being the second-largest cryptocurrency by market cap and the largest decentralized finance (DeFi) platform, has struggled to maintain momentum in 2024. Popular crypto analyst Benjamin Cowen forecasts that Ethereum could face a further 30% drop, possibly leading to a 70% decline from its recent peak of $4,066 in March 2024. This decline could come as early as the fourth quarter of this year.
Ethereum’s Struggles: Lagging Behind Bitcoin and Solana
While Bitcoin (BTC) gained 123% and Solana (SOL) surged 496% over the past year, Ethereum (ETH) managed only a 44% increase. Trading at around $2,370, ETH’s performance mirrors levels seen in mid-2022. Despite showing potential, Ethereum has not hit a new all-time high (ATH) this cycle.
Ethereum’s competitive standing is also being challenged by other layer-1 blockchains like Solana, Aptos, and Sei, which have seen remarkable growth, further putting pressure on ETH’s market performance.
Cowen’s Analysis: Another 30% Drop Possible
Benjamin Cowen, a well-known chart and macro analyst, predicts that Ethereum could face an additional 30% drop in price, adding to the 40% decline it has already seen from its local high. He references previous cycles where Ethereum’s price dropped significantly in the final quarter, most notably in Q4 2016 and Q4 2019, when ETH fell by 70%.
Cowen suggests that this trend could repeat in Q4 2024, especially as Ethereum’s correlation with Bitcoin increases, leading to a joint market correction.
Ethereum Remains Strong Despite Potential Correction
While Cowen is cautious about the near-term outlook for Ethereum, he remains confident in its long-term potential. He believes Ethereum will stay the second-largest cryptocurrency by market cap, reinforcing its strong fundamentals and position in the decentralized finance space.
Cowen notes that Ethereum might be “sniffing out” weaknesses in the market that other cryptocurrencies have not yet identified, indicating that this correction could be a market-wide phenomenon rather than an ETH-specific issue.
