With a massive crash in ETH/BTC value below 0.04, Ethereum holders are under pressure. For the first time in the last three and a half years, the value has dropped below the 0.04 support and breaks below a long-coming falling channel. Currently, the pair stands at 0.03916 with a 24-hour low at 0.03870, leading to a lower price rejection, last seen in April 2021.
Amid the crashing Ethereum value, James Fickel, a well-known ETH bull, has sold another 5,600 ETH, worth $13.30 million. With the sell-off coming as a way to reduce liquidation risk, Fickle continues to hold 153,868 stETH and has borrowed 1,896 WBTC, with a health factor of 2.56.
Historic Repetition Teases Turnaround
With the next support at 0.033662, the downfall in the ETH/BTC pair is likely to continue ahead, based on charts. However, in a recent tweet, Benjamin Cowen shares a support zone between 0.03-0.04. Cowen expects the declining trend to bounce back from the range and trend upwards in 2025. As for the expected time, Cowen expects the bear run to bottom as early as this week or as late as December
Before the reversal expectation, Cowen successfully predicted the crash in the ETH/BTC pair in a tweet. This is where he highlighted the previous crashes of 2016 and 2019, with this time being no different. This historical pattern could be crucial for the ETH price prediction.
FOMC and Crypto Bull Run Chances
Advertisement
On a bullish note, the crypto markets are likely to witness a shift in trend momentum, with the FOMC meeting just two days from now. With the upcoming FOMC meeting, the market anticipates a rate cut-driven bullish rally.
In a recent tweet, Quinten Francois shared an insight supporting the uptrend chances in Bitcoin. In his insight, Francois highlights Bitcoin reaching $69,000 in 2021, with interest rates of 0.25%. Following the bear market, the BTC price jumped to $74,000 during the fastest rate hike and tightening in history earlier this year. As the central banks prepare for a 500 basis point cut in interest rates, Bitcoin prepares for another bull run.
Further, the FEDWatch tool over the CME page shows rising anticipations of a 475-500 basis point cuts ahead. With 59% of investors targeting a 475-500 basis point cut, the 500-525 range declines to 41% could have major implications for the Bitcoin prediction.
Final Points
Supporting the reversal chances, CryptoBullet highlights a third potential breakdown and accumulation phase in the monthly chart of ETH/BTC. This repeating pattern aligns with the 2016 and 2019 predictions of Benjamin Cowen.
With a potential recovery in sight, Crypto Bullet targets 0.08850 as the first level and 0.1100 as the second level in 2025.
Advertisement
In conclusion, despite the recent dump, the historical trend shows a potential turnaround ahead. Further, the market sentiments will rise back with a potential rate cut in the September FOMC meeting.
