Benjamin Cowen, a well-followed cryptocurrency analyst, says anyone keens on knowing the next move of Ethereum should watch out for one indicator on BTC charts which he concluded will affect the performance of the leading smart contract platform in the short term.
In a new session of revealing strategies, Cowen mentioned that the bull cycle of the crypto market had reached a new phase, and every trader is quite uneasy about the state of the entire crypto market. This is largely owing to the lingering consolidation of Bitcoin and the testing of the 20-week SMA (Simple Moving Average).
Based on the information Cowen released, every crypto in the market, including Ethereum, is looking out for Bitcoin to determine their next move.
“We must respect Bitcoin,” he says, “and we must acknowledge that Bitcoin controls the crypto market, and this justifies the reason why the movement of Ethereum has been stalled for a while.”
The analyst noted from history that Ethereum could only pump when BTC tests the 20-week simple moving average but as soon as there is a deviation from the indicator, the direction of Ethereum will change. While on the BTC charts, the price of Bitcoin has gone below the 20-week SMA, the confidence in the wider crypto market has seen a relapse, and ETH usually corrects.
He said, “The implication is quite simple. The meaning is that we’ll look at the 20 and 21-week SMA which has been serving as the support band for the bull market. If the price of BTC stays above the band, there are chances that the bull rally of BTC and ETH will continue…there is no need for BTC to bounce from it, all it needs is to just stay above it irrespective, and if for any reason, it falls under it, the confidence of ETH will be lost in a short while. Though this doesn’t mean that there won’t be a recovery of the run on a larger scale.”
Cowen, however, reveals that he remains bullish on ETH but declared that if BTC cannot hold the SMA, there will be a sharp correction for ETH.
He went on to say that this significant catalyst for the crucial change the crypto market will experience this new week.
Currently, BTC is trading at $44,835 under the 20-week Simple Moving Average, according to data from CoinMarketCap.