• Analyst Benjamin Cowen warns of potential further corrections in the altcoin market, drawing parallels with 2019 patterns.

• Ethereum shows a bearish trend similar to 2019, which could lead to a broader decline in the altcoin market.

Benjamin Cowen, a renowned crypto analyst, has issued a warning to altcoin investors. According to Cowen, the historical trends indicate that altcoins may undergo further corrections. In a recent video directed at his YouTube subscribers, Cowen went over the TOTAL3 chart, which measures the market cap of all other cryptocurrencies excluding BTC, ETH, or stablecoins.

Cowen pointed out a pattern that was seen in 2019, indicating that what is happening in the current altcoin market is similar to it. He noted, “You can see that in 2019 [altcoins]put in this low and then a high. Same thing right here [in 2024], a low, and then a high. And then they bled back down back to this low, and then they ended up holding it for a few weeks.”

He anticipates a possible drop in the market cap between $440 billion and $450 billion, similar to 2019, before plateauing. This outlook relies on the Federal Reserve’s capacity to implement a soft landing of the economy without bringing about a worse recession.

At the time of Cowen’s analysis, the TOTAL3 market cap was $520 billion. However, this figure suggests future uncertainty as it fluctuates within the expected range. Cowen’s observations are especially valuable for investors who are trying to find their way in the unpredictable world of altcoins. Cowen’s argument is based on historical data and paints a prudent picture of the short-term future of altcoins. He stresses that it is crucial to comprehend these patterns to make appropriate investment decisions.

Cowen Highlights Ethereum’s Bearish Pattern

Cowen also had some concerns about Ethereum (ETH), as he pointed out that it is tracing a bearish pattern similar to what was seen in 2019. He cautioned that this could lead to a general fall in the altcoin market.

This analysis is based on Ethereum’s historical performance and current market conditions. At the time of writing, Ethereum is at $2,508 after falling by over 11% in the last 24 hours.