Benjamin Cowen, an analyst at Cowen Research Group warns that altcoins may correct further due to historical precedent.
Cowen, in a recent video to his 804,000 YouTube subscribers, says that the TOTAL3 chart which measures the capitalizations of all crypto-assets excluding Bitcoins (BTC), Ethereums (ETHs) and stablecoins may repeat a 2019 pattern.
You can see in 2019, [altcoins] have a low, and then an increase. The same thing [in 2024], low and high. Then they went back down to the low and held it for several weeks. There’s good reason to believe that you will see this happen with altcoins, as they bleed back to the $440-$450 billion mark, and then try to hold on to it for a few weeks to determine if it’s really a “soft landing” or not .”
Total3’s market capitalization is $520 billion as of the time this article was written.
Cowen warns that ETH has formed a bearish pattern similar to the one seen in 2019, which resulted in a decline of altcoin markets.
You could see something like that happening… Last cycle, ETH/USD fell back into the wedge after ETH/Bitcoin broke down. We’re seeing the same thing play out again. It’s possible to see that happen… In the last cycle ETH/USD fell into that wedge when ETH/Bitcoin collapsed, and now we are seeing that same thing.
Ethereum trades for $2.508 as of the time this article was written, down by more than 11% over the past 24 hours.
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The post Massive Ethereum and Altcoin collapse likely underway as repeat of 2019 unfolds: Benjamin Cowen can be updated with new information.
