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According to Benjamin Cowen, the price of Ethereum (ETH), the leading alternative cryptocurrency, could pull back to the 21-week EMA, which is currently below $3,500.
However, the cryptocurrency would then be able to resume its rally following a short-term retracement.
The analyst, who boasts more than a million followers on the X social media platform, claims that such a pattern has been playing out since April. Cowen is convinced that the same thing will happen this time around.
ETH's bullish momentum fades
As reported by U.Today, Ethereum was on track to record its best Q3 to date, outperforming "DeFi summer" from 2020.
However, its massive rally has now stalled, with the token currently changing hands just below the $4,400 mark.
Notably, Cowen does not rule out that ETH could see a fake push toward $4,900. If it does happen, he expects such a bull trap to occur as early as this week.
Whale buys $1 billion worth of ETH
Meanwhile, a whale recently purchased a whopping $1 billion worth of the leading cryptocurrency. This whale has now purchased and staked a whopping $3.5 billion worth of ETH in virtually no time.
Significant spot ETF inflows
Even though a significant correction seems to be possible based on the chart shared by Cowen, robust spot Ethereum (ETH) inflows might throw a spanner in the works for the bulls.
Last week, these products added a total of 286,000 tokens, according to Glassnode data.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team