Benjamin Cowen, a popular cryptocurrency trader-cum-analyst, has suggested that the price of Ethereum’s native token ether (ETH) could experience further declines before finding a local bottom. Cowen expressed the possibility of ETH nosediving below the $1,000 level, attributing the potential dip to factors related to the asset’s historical patterns.

Will ETH Really Fall Below $1K?

Investors and traders have been closely watching ether’s price in recent weeks since the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. The second-largest crypto set a new year-to-date high of $2,720 after the approvals, but it has since turned soft alongside the broader crypto market.

From a technical perspective, analyst Benjamin Cowen has suggested that ETH historically “tests the integrity” of its major cycle lows roughly two times before proceeding into a new bullish phase. Cowen specifically spotlights 2015, 2016, and 2020 and confirms that another low in 2022 is yet to be revisited.

According to the trader, ether will first break down in its Bitcoin confluence (ETH/BTC) in the coming months before ETH/USD follows.

“So at some point, I think Ethereum will test the integrity of that low, back down below $1,000. But, history would also suggest that it won’t test it until after ETH/BTC breaks down. And history also suggests that ETH/BTC probably won’t break down in January because normally January is a good month for Ethereum,” Bowen told his nearly 800,000 YouTube subscribers.

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However, the analyst noted that it could take some time before this scenario plays out amid increased speculation among investors about the possible introduction of a spot Ether ETF and Bitcoin’s April halving event. According to experts, now that there is clarity after the Bitcoin ETFs, spot ETH ETFs may come sooner than expected.

Spot ETH ETFs Aren’t Far Away

As ZyCrypto previously covered, multiple companies including BlackRock, Fidelity, Grayscale, and Cathie Wood’s ARK Invest are seeking regulatory approval to set up spot ether exchange-traded funds. However, the SEC recently delayed the verdict for these investment products.

Although such delays could subsequently delay a parabolic ETH rally, the SEC’s approval ultimately will propel the price of the asset to new heights. With spot ETH ETFs, U.S. investors will access a regulated, tax-advantaged way of gaining exposure to the industry’s second-biggest crypto. 

Besides the potential ETF, technical developments within the Ethereum ecosystem could also propel the ETH price. Notably, ETH devs recently set the timeline for the final Dencun testnet upgrades. Dencun will be run through the Sepolia test network on January 30, and on the Holesky testnet on Feb.7. This puts the upgrade on track to hit the mainnet in late February or early March.