Ethereum Could Be Heading for Massive Capitulation As Fed Rate Cut Cycle Rocks ETH: Benjamin Cowen

A broadly adopted crypto analyst warns that Ethereum (ETH) may collapse in worth in sync with the Fed’s rate of interest cuts.

In a brand new video replace, crypto strategist Benjamin Cowen tells In line with its 818,000 YouTube subscribers, ETH might observe an identical sample in 2019 and fall in direction of the decrease finish of the logarithmic regression band, placing the best altcoin round $1,000.

In line with the analyst, the logarithmic regression band is designed to trace the truthful worth of an asset utilizing ‘non-bubble information’.

“The explanation I am evaluating 2024 to 2019 is as a result of for those who take a look at the speed hike cycle, for those who simply take a look at charges, the purpose at which the Fed began slicing, when ETH/USD went to the decrease logarithmic regression development line – when it went to deal with when the Fed began slicing spending. And now the identical factor is going on once more. The Fed is beginning to minimize spending, and because it does, ETH/USD is trending down, presumably into the fourth quarter.”

Cowen additionally says that ETH might have already discovered a market backside towards Bitcoin (ETH/BTC), despite the fact that ETH/USD nonetheless has a decrease path to go.

“Bear in mind, ETH/Bitcoin bottomed out in 2019 earlier than ETH/USD. ETH/Bitcoin bottomed out in September. Coincidentally, the underside for ETH/Bitcoin proper now’s September 2024. It may go slightly decrease, however I do not assume it is going to go that a lot decrease. No means. I imply, possibly slightly, however you do not have to. I may simply see it discovering a backside comparatively shortly, bouncing, after which rising in 2025. However regardless of ETH/Bitcoin bottoming in September 2019, ETH/USD continued to fall.”

ETH/BTC is buying and selling at 0.03905 BTC ($2,618) on the time of writing, down 1.74% within the final 24 hours.

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