Form the interview of a renowned crypto analyst Benjamin Cowen which he says that one of worst case scenarios for both digital assets is the macro economic headwinds which could possibly drive the two digital assets bitcoin and Ethereum to a fresh bearish position.
He continued by saying that the second largest asset would possibly witness a whooping 65% in price decline from it’s current price value.
“The worst case scenario would be dependent on how bad this potential recession ends up being. It’s hard to know exactly how that’s going to affect crypto, but I would say for Ethereum, the main levels I’m watching are the $400-$600 range.
I don’t know if it’s going to go all the way down to $400, but I do think a $600 ETH is potentially in the cards mainly because I think there’s a lot of evidence to suggest that it’s about one cycle behind Bitcoin in terms of volatility.
[ETH’s] first cycle [was] a solid 95% bear market and Bitcoin’s first bear market was 94%. Bitcoin’s second bear market was around 87% so if Ethereum goes down 87% from its all-time high this time, or even 88%, that’s gonna put it at just below $600, so I think there’s a case to be made that Ethereum could have this final capitulation down into the $400-$600 range.”
Well of recent both digital assets have been able to hold their support line, which the market in general is experiencing some slight or brief bullish run.
At the point of writing bitcoin was selling at slightly above $16k, while Ethereum is selling slightly above $1k.
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