Analyst Ben Cowen believes that given Bitcoin's current state, Ethereum is unlikely to reach a new peak in the next year; even if it returns to All-Time-High of $4,878, the scenario could be a Bull Trap followed by a fall to $2,000.
This assessment places Ethereum in a context of strong dependence on Bitcoin's performance, highlighting the risk of a sharp short-term surge followed by a deep reversal if buying pressure is not sustainable.
- Ethereum is not expected to reach a new high in the next year.
- The all-time high (ATH) mentioned is $4,878 (August).
- Bull Trap scenario: could fall to $2,000 after the rally.
Ethereum will struggle to reach new highs if Bitcoin's performance is unfavorable.
Ben Cowen believes Ethereum is unlikely to reach new highs in the next 12 months, based on Bitcoin's current state.
The core of the argument is the link between the two major Cryptoasset : with Bitcoin not yet in a state of sustained uptrend support, Ethereum's ability to break through to new highs is limited. This assessment was made on December 26th, as the market watched Bitcoin's direction to confirm whether the bull cycle was continuing or weakening.
Bull Trap scenario if Ethereum returns to $4,878
If Ethereum returns to its ATH of $4,878 (August), Cowen warns that the rally could turn into a Bull Trap and the price could fall back to $2,000.
The scenario described is that prices surge to the previous peak, attracting momentum, then reverse sharply. The $4,878 mark is considered a crucial testing ground; failure to maintain above this level would clearly indicate a risk of a deep correction, with a target of falling to $2,000.
