Top Analyst Issues Ethereum Alert, Says There’s a ‘Decent Chance’ ETH Crashes in December

An important cryptocurrency analyst is cautioning investors about a potential crash in December for the leading altcoin Ethereum (ETH).

During a recent strategy session, well-known crypto trader Benjamin Cowen shared with his 869,900 followers on the social media platform X that based on historical trends, the second-largest digital asset by market cap could experience a decline towards the end of the year, possibly hitting its lowest point in December.

“In 2016, ETH experienced significant drops in April, August, and December. In 2024, ETH saw major drops in April and August. Therefore, there is a good chance it could follow a similar pattern, with another drop in ETH before the end of the year, reaching its low in December.”

At the time of writing, Ethereum is trading at $2,517, showing a slight decrease over the past 24 hours.

Cowen also mentioned that the ETH/BTC pair could begin to decline around the same period and might drop to as low as 0.036 if it fails to hold its support around 0.038.

“ETH/BTC has just broken the previous low. As I mentioned, if 0.038 doesn’t hold, the next likely stop is 0.036. Structurally, I believe the low will be reached before the end of the year (at the latest in the second week of January). If 0.038 fails, the next target is the 2016 high of 0.036. As I’ve been saying for three years, the low this cycle is likely between 0.03-0.04.”

The current value of ETH/BTC is 0.0372.

According to Cowen, the ETH/BTC pair may not reach its low until it fails to surpass its 50-day simple moving average (SMA).

“As I mentioned a month ago, as long as ETH/BTC is unable to exceed the 50-day SMA, it is reasonable to assume that the low may not have been reached. In 2016 and 2019, once the actual low was established, ETH/BTC experienced a strong upward movement above the 50-day SMA (which has not yet occurred).”