A closely followed crypto analyst is issuing a warning to investors about Ethereum (ETH), saying that a deep correction could hit the top altcoin as soon as this month.
In a new video update, crypto trader Benjamin Cowen tells his 928,000 YouTube subscribers that the second-largest digital asset by market cap could dip in the coming weeks and even move below the $4,000 price level.
-->However, the trader notes he believes that the correction will set the stage for a strong ETH recovery.
“I talk about Ethereum potentially getting that 30 drop, not from the current levels, but from the local high, a lot of people get upset. But from the current levels, it would be about another 20 drop that I think will happen.
Now, I want to be clear. My expectation right now is that Ethereum will go back up, but not before it tags that 21-week EMA (exponential moving average). I’m thinking by late September or early October.”
Source: Benjamin Cowen/YouTubeAccording to Cowen, Ethereum should drop to somewhere between the $3,400 and $3,600 range during his specified timeframe before shooting back up to a new all-time high.
The analyst goes on to note that investors should focus on a handful of trade ideas rather than try to make plays on many.
“A lot of people ask me why I keep focusing on Ethereum, like why am I not talking about all these altcoins that are doing well? And the reason is because in order to be a successful investor, you don’t need to track like a thousand different altcoins.
You just need a good trade idea here or there… You can make a lot of money on a single idea rather than looking at a lot of different altcoins.”
Ethereum is trading for $4,289 at time of writing, a fractional increase during the last 24 hours.
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