The widely followed cryptocurrency analyst Benjamin Cowen is warning that Ethereum (ETH) could slide further against Bitcoin (BTC).
In a new video, Cowen tells his 866,000 YouTube subscribers that Ethereum could continue falling against Bitcoin if the US monetary policy remains restrictive.
“This cycle Ethereum has had plenty of narratives – the transition from proof of work to proof of stake, it being deflationary for a period of time…
…among other narratives as well – the spot ETF, institutional buying… it has not stopped Ethereum/Bitcoin from dropping…
…as we’ve said for a long time until quantitative tightening ends, Ethereum/Bitcoin can go lower.”
According to Cowen, the Ethereum/Bitcoin pair previously bottomed out when the US monetary policy eased.
“There’s not really a clear reason to assume that the [Ethereum/Bitcoin] bleed is over until quantitative tightening ends. The reason I made that assumption was if you look at the balance sheet of the Federal Reserve you will notice that last cycle Ethereum/Bitcoin bottomed precisely when quantitative tightening ended.
So as quantitative tightening continued, Ethereum/Bitcoin went down. When quantitative easing began Ethereum/Bitcoin went up. It was as simple as that and it had nothing to do with all the other narratives out there.”
On where and when the Ethereum/Bitcoin pair could bottom out, the widely followed analyst says,
“I don’t know how much lower it [Ethereum] has to go. It’s gone to 0.023 BTC. I can’t with a clear conscience be overly bearish on Ethereum/Bitcoin at 0.023 BTC. I can acknowledge that it could go lower until quantitative tightening ends. I can accept that as a reality.
But there’s also a potential reality where quantitative tightening ends soon and maybe it bottoms right here [0.02337 BTC] for a while especially considering that this has been a support level for Ethereum/Bitcoin before…
…so for me I think that it’s got to be getting close. But if you were to tell me that quantitative tightening were to continue for another six months then I would probably say ‘yeah, it’s probably going to go down.’ But if you were to tell me the quantitative tightening is going to end next month, then this very well could be the bottom.”
Ethereum is trading at 0.0285 BTC ($2,812) at time of writing.
Generated Image: Midjourney
