Analyst Benjamin Cowen warns that altcoins could correct further given historical precedents.
In a new video, Cowen tells his 804,000 YouTube subscribers that the TOTAL3 chart, which tracks the market cap of all crypto assets except Bitcoin (BTC), Ethereum (ETH), and stablecoins, may be repeating a similar pattern to 2019.
“You can see that in 2019 [altcoins] put this low and then high. Same here [in 2024]”The low, and then the high. And then they dropped back to that low, and ended up holding it for a few weeks. So there’s a good chance you’ll see something similar again with the altcoin market, where it drops back to $440 billion, $450 billion, and tries to hold on to it, and tries to figure out whether the Fed orchestrated a soft landing or whether it’s actually a hard landing.”
At the time of writing, Total3’s market capitalization was valued at $520 billion.
Cowen also warns that ETH is forming a similar bearish pattern to 2019, which led to a broader altcoin market decline.
“You could get something where [ETH] just bounces and then slowly moves down to the trend line again [at around $1,980]. I could see something similar happening… Last cycle, ETH/USD fell into this wedge again after ETH/Bitcoin crashed, and we’re seeing the same thing unfold.”
At the time of writing, Ethereum is trading at $2,508, down more than 11% in the last 24 hours.
