Cryptocurrency strategist Benjamin Cowen has revealed in a new analysis what he believes will be the timeline for ETH to be able to return to its all-time high of $4,865 and then surpass the $5,000 mark.
When ETH pass $5,000
So, the analyst’s first point is that ETH has been trading in a wide range between $2,000 and $4,000 since early 2021, which for him is extended consolidation and nothing out of the ordinary.
“You also have to remember that this volatility is incredibly normal for an asset class that is capable of yielding 40x in about a year. If a 40x is possible in a year and then we have to consolidate for a while, often these consolidation phases can last,” he said.
Thus, Cowen is referring to ETH’s massive rally from March 2020 to May 2021, when the leading smart contract platform soared from around $100 to over $4,000.
The cryptocurrency strategist also says that ETH’s current price action resembles its market structure in 2016, when the second-largest cryptocurrency also consolidated for nearly a year before triggering a parabolic surge.
So, using the 2016 market structure as a roadmap for what’s to come, Cowen predicts a new value above $5,000 for ETH before the end of the first half of 2022.
However, he argues that for this to occur, the price of BTC must be above $30,000, at least, because if it falls below this level, the entire market must suffer.
“Qualitatively, there are still a lot of similarities between what would have happened with ETH back then and what is happening today. Now I have to say that I don’t expect ETH to make a 200x move from this point. But let it set a new historical record in its value in the first half of the year”, he concluded.