Analyst Benjamin Cowen is warning that altcoins could correct even further based on historic precedence.
In a new video, Cowen tells the 804,000 subscribers of his YouTube channel that the TOTAL3 chart, which tracks the market capitalization of all crypto assets excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins, may be repeating a similar 2019 pattern.
“You can see that in 2019 [altcoins] put in this low and then a high. Same thing right here [in 2024], a low, and then a high. And then they bled back down back to this low, and then they ended up holding it for a few weeks. So there’s a good chance you’re going to see something like that happen again with the altcoin market, where it bleeds back down to like $440 billion to $450 billion, tries to hold it and tries to figure out if the Fed has engineered a soft landing or if, in fact, it is a hard landing.”
The Total3 market cap is valued at $520 billion at time of writing.
Cowen also warns that ETH is forming a similar bearish pattern to 2019, which led to a broader altcoin market decline.
“You could get something where [ETH] sort of just bounces around and then slowly makes its way down to the trend line again [at around $1,980]. I could see something like that happening… Last cycle, ETH/USD fell back into that wedge after ETH/Bitcoin broke down, and we’re seeing the same thing play out.”
Ethereum is trading for $2,508 at time of writing, down more than 11% in the last 24 hours.