Crypto expert Benjamin Cowen cautions that Ethereum (ETH) may experience a dramatic price drop despite its recent rally following the Shapella network upgrade. Cowen, who boasts 785,000 YouTube subscribers, suggests that ETH could fall by over 57% from its current value of $1,869.
Cowen employs the term “home” to represent the fair-value logarithmic regression trendline based on non-bubble data. He contends that Ethereum’s post-upgrade rally to $2,000 is likely temporary, as the smart contract platform is expected to retest lows within the logarithmic regression chart’s upper and lower bounds.
Cowen points out that the fair-value trendline is presently around $800 but acknowledges the possibility of ETH repeating patterns from 2019 and 2020 when its price dipped below the trendline. He identifies a lower regression trendline bound of $574 and suggests that Ethereum’s “deep value zone” lies between $400 and $600.
Although there is no guarantee that ETH will reach these levels, Cowen believes that investors should consider the potential outcome and be prepared for a return to the $700 or $800 range.