An analyst in the crypto space is examining past price movements to outline a potential capitulation scenario for Ethereum against Bitcoin (ETH/BTC).
In a recent video update, crypto expert Benjamin Cowen, with a large following on YouTube, suggests that ETH/BTC could face challenges if the Federal Reserve decides to cut rates in September and if the pair follows a similar pattern to the 2016 market cycle.
“What’s really interesting about 2016 is when you look at [the chart], it swept [the lows at 0.015 BTC] in June whereas this cycle it [swept the lows at 0.045 BTC] in May, about one month earlier.”
Cowen suggests that if ETH/BTC mirrors a 2016-style capitulation, the pair could initially rise to its immediate resistance at 0.056 BTC in August before potentially dropping back to support at 0.045 BTC in September if the Fed implements rate cuts during that month.
The analyst also anticipates that a rate cut could spark a decline in the pair’s value, leading to ETH/BTC reaching its cycle lows by the end of the year.
In December 2016, ETH/BTC fell to as low as 0.00733 BTC before subsequently reaching all-time highs of 0.156 BTC a year later.
Currently, ETH/BTC is trading at 0.0519 BTC, equivalent to $3,524.
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