Ethereum ($ETH), the second-largest cryptocurrency by market capitalization, has had a challenging year, significantly underperforming compared to Bitcoin. Over the past six months, Ethereum has lost approximately 35% of its value, leaving investors concerned about its future prospects.
Despite the launch of spot Ether exchange-traded funds (ETFs) in the United States back in July, which many anticipated would boost its price, Ethereum has continued to endure a bearish trend. In the past 30 days alone, the cryptocurrency has shed 23% of its value, raising concerns among investors who expected a post-ETF surge.
The downturn in Ethereum’s price has caught many by surprise, particularly given the optimism surrounding the ETF launch. However, Benjamin Cowen, a well-known cryptocurrency analyst, has offered a different perspective. According to Cowen, Ethereum’s monthly candles are closely mirroring its performance from 2016, suggesting that if this pattern continues, Ethereum could end September on a positive note before potentially experiencing a decline later in the year, followed by a significant surge in 2025.
Cowen shared his analysis on the platform X (formerly Twitter), noting that in 2016, Ethereum was trading just below $11 before skyrocketing to $370 in 2017, and eventually reaching over $1,360 in early 2018, ahead of a major bear market. If Ethereum were to replicate this 12,200% surge, the cryptocurrency could surpass the $30,000 mark, leading to a historic bull run and a dramatic increase in its market capitalization.
However, it’s crucial to note that past performance is not always indicative of future results. The cryptocurrency market is highly volatile, and unforeseen events could disrupt any predicted price movements.
In addition to Cowen’s analysis, Jamie Coutts, Chief Crypto Analyst at Real Vision, provided a critical outlook on the future of real-world asset (RWA) tokenization. While Wall Street forecasts suggest that $10 to $30 trillion in traditional assets could be tokenized by 2030, Coutts believes these numbers are overly ambitious. Instead, he estimates that if the current two-year compound annual growth rate (CAGR) of 121% continues, a more realistic figure might see around $1.3 trillion in tokenized assets by 2030.
As Ethereum navigates its current bearish trend, the cryptocurrency community remains divided on its future. Some analysts, like Cowen, see the potential for a significant surge, while others, like Coutts, offer a more conservative outlook on related markets such as tokenization. Investors are advised to stay informed and cautious as the market evolves.