Ethereum has experienced a significant decline against Bitcoin, hitting a 3-year low. The ETH/BTC pair dipped below 0.04, marking a crucial dip that has not been seen in over three years. This drop under the 0.04 support level continues a long-term bearish trend, with the value currently hovering at 0.03916 and reaching a 24-hour low of 0.03870. The most recent lower price rejection mirrors a trend last observed in April 2021.
In response to the plummeting ETH value, prominent Ethereum proponent James Fickel sold 5,600 ETH worth $13.30 million. To mitigate liquidation risk, Fickel offloaded his assets, yet he continues to hold 153,868 stETH and has borrowed 1,896 WBTC, maintaining a health factor of 2.56.
Historical Patterns Indicate Potential Ethereum Turnaround
The ETH/BTC pair has its next support at 0.033662, suggesting further decline based on technical analysis. Recently, analyst Benjamin Cowen pinpointed a support zone between 0.03-0.04 in a tweet. Cowen forecasts a potential rebound from this range, anticipating an uptrend by 2025. He expects the current bearish run to bottom out between this week and December.
Cowen has previously accurately predicted major market movements, including this ETH/BTC crash. Highlighting past crashes in 2016 and 2019, he suggests that the present situation follows a similar historical pattern, which might be pivotal for predicting future ETH prices.
Impact of FOMC Meetings on Crypto Market Trends
The upcoming FOMC meeting presents a beacon of hope for Ethereum and the broader crypto market. Many analysts predict a bullish shift in momentum triggered by an anticipated interest rate cut.
In a recent tweet, Quinten Francois emphasized the potential for Bitcoin’s rally, reminiscent of its surge to $69,000 in 2021 under 0.25% interest rates. He noted Bitcoin’s resilience, with prices peaking at $74,000 this year during historically rapid rate hikes. As central banks gear up for a 500 basis point cut, prospects for another Bitcoin bull run are growing.
Additionally, the CME’s FEDWatch tool reveals that 59% of investors expect a 475-500 basis point cut, while the likelihood of a 500-525 range has decreased to 41%. This could have substantial implications for Bitcoin’s trajectory.
Potential for ETH/BTC Reversal and Growth
Illustrating a bullish outlook, CryptoBullet notes that the ETH/BTC monthly chart hints at a third potential breakdown and accumulation phase, aligning with past rebounds in 2016 and 2019 as pointed out by Benjamin Cowen.
Crypto Bullet projects target levels at 0.08850 and 0.1100 by 2025. Despite the recent downturn, historical trends and favorable market conditions point to a potential reversal and significant growth ahead for ETH.
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