Crypto analyst Benjamin Cowen believes Ethereum (ETH) is mirroring its 2019 performance, but on a much slower timescale.
Cowen’s Analysis
In a recent YouTube video, Cowen pointed out that ETH’s current price action closely resembles its 2019 trajectory, albeit stretched out over a longer period. He attributes this extended timeframe to the prolonged quantitative tightening (QT) by central banks. Unlike the 2019 cycle where QT ended before the halving, this time it’s still ongoing, well into the post-halving year. However, Cowen anticipates QT ending within the next few months, possibly by mid-2025, based on a Federal Open Market Committee meeting summary.
The Impact of Quantitative Tightening
Quantitative tightening is the process where central banks reduce the money supply to combat inflation. Cowen suggests this prolonged QT is the key factor influencing Ethereum’s slower price movement compared to previous cycles.
Current Market Conditions
At the time of writing, Ethereum is trading around $1,652, showing a 12% increase in the last 24 hours.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct your own research before investing in cryptocurrencies.