A closely followed crypto strategist thinks Ethereum (ETH) is gearing up for a massive breakout against Bitcoin (ETH/BTC).
Analyst Benjamin Cowen tells his 849,000 followers on the social media platform X that the ETH/BTC trading pair may be setting up for a bullish reversal in 2025 after being stuck in a downtrend for about one year.
“One year later and it’s almost complete. I think that the altcoin reckoning will end this year. The altcoin reckoning refers to the devaluation of altcoins on their BTC pairs. Next year, ETH/BTC should go up, but still four and a half months to go before 2025.”
ETH/BTC is trading for 0.04450 BTC ($2,584) at time of writing, down slightly in the last 24 hours.
Cowen alsosays in a new YouTube video that a possible correlation between Ethereum and the US Dollar Index (DXY) could indicate what ETH’s price action may be in the final months of 2024. The US Dollar Index is a benchmark of the value of the US dollar compared to a basket of other widely traded global currencies.
A DXY on an uptrend indicates a strengthening US dollar while a downtrending DXY indicates a weakening US dollar.
“With ETH, one of the things to note back then was that it did have a sell-off here in June, July and August [of 2016], just like we’ve had this year in June, July and August. September was green [in 2016]. So maybe we get a green September. And then October, November, December were red [in 2016]. So do be aware of that. But the reason why that’s interesting…the reason it was red was because the dollar was going up in Q4 of 2016.”
Generated Image: Midjourney