Closely followed crypto analyst Benjamin Cowen says that one last correction could trigger an Ethereum (ETH) run to new all-time highs in the near future.
In a new strategy session, Cowen points out a correlation between the Bank of Japan raising interest rates and ETH capitulation wicks the following month, potentially reacting to macro signals coming from the BOJ.
[adinserter block="1"]Cowen notes that after nearly eight years of keeping interest rates flat, the BOJ raised them in March and July of 2024 and then again this month. Since the first two rate hikes preceded volatile Ethereum corrections in April and August, Cowen suggests that the BOJ’s most recent hike could mean that ETH is in for another dip in the short term.
However, Cowen says he believes that if such a correction were to occur, it would likely be the last major drop before ETH runs to all-time highs.
“So what you had was the BOJ raising rates in March and July, and now January. And you had capitulation wicks by ETH in April and August… I’m just saying, if there has to be an event to get it to QE (quantitative easing), it seems like this is it. There might not have to be. If Powell comes out next week and he just says ‘No, we’re not going to QE yet,’ I wonder if it would trigger some event. I just know that in March, the BOJ raised rates and at first, everyone thought it was fine and nothing was going to happen, and then before we knew it, the whole crypto market was dropping. And then in July, they raised rates, and for a little while it was okay and the market was holding on and then August came and all hell broke loose. And now it’s kind of the same thing. It’s January, they just raised rates yesterday, and I’m just wondering…
Now if there is a drop in the market, and ETH does fall below the bull market support band, then I think it would enter into its final drop before a new all-time high. That’s what I think. I haven’t given up on ETH, I do think it will go to new all-time highs, but there’s always a chance that it has to get one more drop.”
At time of writing, ETH is trading at $3,167.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
