A widely followed crypto analyst is issuing a warning that Ethereum (ETH) may collapse in value in sync with Fed rate cuts.
In a new video update, crypto strategist Benjamin Cowen tells his 818,000 YouTube subscribers that ETH may follow a similar 2019 pattern and plummet to the lower bound of the logarithmic regression band putting the top altcoin at around $1,000.
[adinserter block="1"]According to the analyst, the logarithmic regression band is designed to track the fair value of an asset using “non-bubble data.”
“The reason I compare 2024 to 2019 is because if you look at the rate hiking cycle, if you just look at interest rates, where the Fed started to cut that was when ETH/USD went to the lower logarithmic regression trend line – when it went home when the Fed started to cut. And now the same thing is happening again. The Fed is starting to cut, and as it does ETH/USD is trending down, potentially through Q4.”
Cowen also says ETH against Bitcoin (ETH/BTC) may have already found a market bottom even if ETH/USD has lower to go.
“Remember, in 2019 ETH/Bitcoin bottomed before ETH/USD. ETH/Bitcoin bottomed in September. Coincidentally, the low for ETH/Bitcoin right now is September of 2024. It could go a little bit lower, but I don’t think it’s going to go that much lower. I really don’t. I mean, a little bit maybe, but it doesn’t have to. I could easily see it finding a bottom relatively soon, bouncing and then going up in 2025. But despite the fact that ETH/Bitcoin bottomed in September of 2019, ETH/USD kept going down.”
ETH/BTC is trading for 0.03905 BTC ($2,618) at time of writing, down 1.74% in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
