Ethereum Analyst Warns of Potential 40% Correction Ahead

Ethereum (ETH) is facing a potential 'window of weakness' in August and September, according to Benjamin Cowen, a well-known analyst. This comes after a temporary relief seen in July, which has historically been a positive month for cryptocurrency markets due to the US midterm election years.

Cowen pointed out that while July's rallies were followed by sharp corrections in August and September, with drops of up to 80% in past years. He doesn't expect a catastrophic drop this time around but predicts a correction slightly deeper than in 2022 due to social apathy and low participation.

The analyst noted that Ethereum has formed a 'higher low' compared to Bitcoin, which is currently in a sideways phase. A potential pullback could see Ethereum experience a correction of around 40% from the $1,800-$2,000 range, potentially refreshing its lows.