Ethereum Unlikely to Reach New Highs in 2026: Ben Cowen
Key Takeaways:
- Crypto analyst Ben Cowen cautions that Ethereum might not make new all-time highs by 2026, warning of possible “bull traps.”
- The broader decline in Ethereum’s price could be linked to Bitcoin’s suspected ongoing bear market.
- Ether, if it hits its previous high, may exhibit a sharp reversal, plummeting to around $2,000.
- Factors such as market sentiment, global economic conditions, and technological developments are pivotal to Ethereum’s future performance.
WEEX Crypto News, 2025-12-26 10:17:13
In the ever-fluctuating world of cryptocurrencies, predictions and speculations about future price movements are commonplace. One such forecast comes from seasoned crypto analyst Ben Cowen, who postulates that Ethereum, one of the leading cryptocurrencies, might struggle to reach new all-time highs by 2026. As the crypto community braces itself for the coming years, Cowen’s analysis provides a sobering look at Ethereum’s potential trajectory amidst existing market conditions.
The Current Climate for Ethereum
Ethereum, often lauded for its smart contract capabilities and as the backbone of decentralized finance (DeFi), has faced several challenges recently. Now trading at $2,972, Ethereum has tumbled from its impressive all-time high of $4,878 reached briefly in 2021. This volatile journey paints a picture of a market grappling with uncertainty, influenced by both internal developments within the Ethereum ecosystem and external economic factors.
Cowen’s skepticism about Ethereum’s climb to new heights can be attributed to the broader cryptocurrency market dynamics, particularly Bitcoin’s current state. Bitcoin, like a giant in the world of digital currencies, has a significant influence over market movements, and its prolonged downturn adds pressure on Ethereum’s prospects for growth. If Bitcoin remains ensconced in a bear market, Cowen asserts that it would be equally challenging for Ethereum to achieve new highs.
The Interconnectedness of Bitcoin and Ethereum
Bitcoin’s potential fall to as low as $60,000 by the third quarter of 2026, as suggested by trader Peter Brandt, illustrates the volatility and unpredictability inherent in cryptocurrency markets. Such a downturn for Bitcoin could, by extension, create a more challenging environment for Ethereum. The price of Bitcoin is a crucial bellwether for the entire crypto market, often setting trends that other cryptocurrencies tend to follow.
If we consider the possibility that Ether might reclaim its past glory of $4,878, Cowen warns of potential pitfalls. He describes such a scenario as a ‘bull trap’—a market condition where a price rally might spur investor optimism only to trap them in a subsequent and sharp decline, potentially reverting to lows of around $2,000. This sharp reversal would not only dampen Ethereum’s recovery prospects but could also rattle investor confidence.
A Closer Look at Ethereum’s Historical Price Movement
Ethereum’s price journey is marked by peaks and troughs, showcasing unpredictability yet potential for lucrative gains. The enigmatic nature of cryptocurrency means that while new highs likely seem out of reach according to Cowen, Ethereum’s historical resilience cannot be discounted. Crypto analyst Crypto With James emphasizes that Ethereum may still have room for growth, hinting at a potential rally toward its previous peaks. It’s a reminder that even amidst bearish sentiment, there’s a glimmer of optimism.
While the current market conditions pose a challenge, Ethereum’s underlying technology continues to develop rapidly. Innovations such as the Ethereum 2.0 upgrade aim to address scalability issues—one of the persistent concerns hampering its widespread adoption. The blockchain’s roadmap, characterized by Glamsterdam and Hegota forks, L1 scaling, among others, points to a future that’s tech-driven and growth-oriented.
Potential Drawbacks and Risks
Despite its promising outlook in terms of technology, some risks cannot be ignored. Fundstrat Global Advisors cautioned investors about a possible ‘meaningful drawdown’ in 2026 where Ethereum’s price could reflect figures between $1,800 and $2,000. Factors such as global economic conditions, regulatory scrutiny, and investor sentiment can heavily influence these outcomes.
Moreover, with many altcoins (alternative cryptocurrencies) being described as ‘cooked’ for this cycle by Cowen, the ripple effect across the crypto market could be significant if Ethereum fails to meet expectations. Such discouragement would likely extend to other altcoins, many of which mirror Ethereum’s trajectory due to their interdependencies.
Navigating the Uncertain Future
For investors and crypto enthusiasts, understanding the nuances of Ethereum’s potential performance by 2026 requires an examination of both technical progress and broader economic trends. Recognizing the interconnectedness of the crypto market, staying apprised of technological advancements such as Ethereum’s upgrades, and being aware of the global economic backdrop are all pivotal.
The dichotomy of Ethereum’s situation is that while it stands at the forefront of blockchain innovation, its market positioning is equally susceptible to external pressures. Therefore, anyone eyeing future investments must weigh their decisions against this complex tapestry of influences while adopting a cautious yet informed approach.
In conclusion, while Ethereum might not be poised for new highs by 2026 according to Ben Cowen, it is necessary to remain cognizant of the market’s fluid nature. The interplay between technological evolution and market sentiment will ultimately shape Ethereum’s journey moving forward. For now, Cowen’s cautionary stance serves as a critical lens through which investors can reevaluate their strategies in this unpredictable domain.
FAQs
Is Ethereum expected to hit new highs by 2026?
According to Ben Cowen, Ethereum is unlikely to reach new highs by 2026. Factors such as Bitcoin’s bear market conditions contribute to this skepticism.
What is a “bull trap” in cryptocurrency?
A bull trap occurs when a price temporarily rallies, leading investors to believe it will continue rising, only to reverse sharply and lead to losses.
How does Bitcoin’s performance affect Ethereum?
Bitcoin often influences the broader crypto market, including Ethereum. When Bitcoin is in a downturn, it can create challenging conditions for Ethereum to grow.
What technological developments are planned for Ethereum?
Ethereum is undergoing significant upgrades like Ethereum 2.0, focusing on scalability and network efficiency with developments such as Glamsterdam and Hegota forks.
What are the risks if Ethereum doesn’t achieve new highs?
Risks include potential investor loss of confidence and adverse impacts on other altcoins, many of which are closely tied to Ethereum’s market performance.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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