Crypto analyst Benjamin Cowen is warning that Ethereum (ETH) could be in for a major price drop, similar to what happened in 2019. He believes that the Fed’s rate cuts could trigger a decline in ETH’s value.
Fed Rate Cuts and Ethereum’s Past
Cowen, who has a large following on YouTube, points to the correlation between Fed rate cuts and Ethereum’s price movements. He notes that in 2019, ETH’s price plummeted to the lower end of a specific technical indicator called a logarithmic regression band when the Fed started cutting interest rates. He believes that a similar pattern could play out in 2024.
“The Fed is starting to cut rates again, and we’re seeing ETH trending downwards. This could continue through the end of the year,” Cowen said.
ETH/BTC May Have Bottomed Out
While Cowen predicts a potential decline for ETH against the US dollar (ETH/USD), he believes that Ethereum’s price against Bitcoin (ETH/BTC) may have already reached its bottom.
“ETH/BTC bottomed out in September of 2019, and we’re seeing a similar pattern this year,” he explained. “It could go a little lower, but I don’t think it will drop significantly. I could see it finding a bottom soon, bouncing back, and rising in 2025.”
Disclaimer
It’s important to remember that this is just one analyst’s opinion. The cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Always do your own research and consult with a financial advisor before making any investment decisions.
