Ethereum Price Rally Sparks Warning from Leading Analyst

Ethereum has experienced a dramatic rally in recent times, according to Benjamin Cowen, a leading analyst in the cryptocurrency market. In his analysis, Cowen highlighted Ethereum's strong rebound from its lows around $1,500 and shared his insights on potential market bottoms and critical risks facing the crypto asset.

Cowen analyzed Ethereum's price structure through regression channels and fair value models, indicating that the current fair value zone for Ethereum lies between $2,300 and $2,400. However, he added that for the price to sustain its upward momentum, it needs to decisively break above critical technical resistance levels such as the 200-day moving average.

The analyst also touched upon the impact of macroeconomic risks on the crypto market, stating that a potential correction in the S&P 500 index would directly affect the price of Ethereum. A deeper 20% decline could trigger sharp pullbacks exceeding 50% in ETH, according to Cowen.