Crypto analyst Benjamin Cowen believes Ethereum (ETH) is mirroring its 2019 market cycle and is in for a rough ride before recovery. He shared his insights with his over 880,000 YouTube subscribers.
Cowen’s Prediction: Pain Before Gain
Cowen predicts that a shift in monetary policy is necessary for ETH’s price against Bitcoin (BTC) to hit bottom. He emphasizes that this policy change requires a period of market downturn, stating, “But in order to have a change in monetary policy, you have to have pain. Welcome to the pain.” He draws a parallel to the 2019 cycle, where ETH’s price against the US dollar dropped below its support level just before the Federal Reserve ended quantitative tightening.
A Familiar Cycle, But Bigger
Cowen points out that the current market cycle closely resembles the 2019 cycle, but on a much larger scale. The price points in this cycle are roughly ten times higher than in 2019. He attributes the current market’s prolonged downturn to the lack of a change in monetary policy, unlike in 2019 when the policy shift occurred before the halving. This time around, quantitative tightening has only slowed, not stopped.
Current Market Conditions
At the time of writing, ETH is trading at $1,907, down over 1% in the last 24 hours.
Disclaimer: This information is for general knowledge and shouldn’t be considered financial advice. Always conduct your own research before investing.