Market analyst Benjamin Cowen says Ethereum’s (ETH) ability to extend its recent gains depends on whether Bitcoin (BTC) can remain above a key technical level that defines broader market momentum.
In a new video update, Cowen says his outlook for ETH’s next rally is tied to BTC staying above its 50-week moving average, a long-term trend indicator watched by traders to gauge whether the market is in bullish or bearish territory.
Cowen says,
“I could see a scenario where Bitcoin stays above the 50-week moving average… it allows Ethereum to get one final rally to end the cycle. Hopefully that pans out.”
At time of publishing, Bitcoin has slipped below its 50-week simple moving average of approximately $103,000, with BTC trading at $98,653.
Cowen adds that if Bitcoin closes below the 50-week average for two consecutive weeks, it would mark a break from his base case and signal the end of Ethereum’s upward cycle.
“At that point, I would let it go and be like, look, had a good run, but it was always going to come to an end at some point.”
He notes that Ethereum’s recent move below its bull market support band – a range combining the 20-week simple and 21-week exponential moving averages – adds uncertainty to the current trend.
Despite the setback, Cowen says he remains open to the possibility of ETH making another push toward a new all-time high if broader market conditions hold.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/klyaksun
