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A widely followed crypto analyst says that smart contract platform Ethereum (ETH) appears close to bottoming out against Bitcoin (BTC).
In a new video update, crypto strategist Benjamin Cowen tells his 877,000 YouTube subscribers that the ETH/BTC pair will likely find its cycle low under 0.017 ($2,181) sometime near the end of the year.
“ETH/BTC market cap ratio is getting pretty close to the lows…I think there is a decent chance that it will bottom out.”
However, according to Cowen, if the US Federal Reserve were to cease its monetary policy of quantitative tightening, the ETH/BTC pair would immediately bottom out. Quantitative tightening is when central banks shrink their budgets to reduce the amount of money circulation in the economy as a means of countering inflation.
“If the Fed were to end quantitative tightening, that could very well mark the bottom for ETH/BTC right now…
I don’t really expect it to go higher until quantitative tightening is over, at least not in a durable fashion. That doesn’t mean [ETH/BTC] can’t bounce around but I just wouldn’t expect that until quantitative tightening is over.
What’s likely going to happen at some point is whenever quantitative tightening ends, it’ll likely get a rally back up to the bull market support band.”
In June 2022, the Federal Reserve announced that it would reduce its balance sheet.
ETH/BTC is trading for 0.0264 ($2,227) at time of writing, a 3.2% decrease from the previous 24 hours.
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