A well-known cryptocurrency analyst is sounding the alarm about Ethereum (ETH), suggesting that its value could plummet in tandem with Federal Reserve rate cuts. In a recent video update, Benjamin Cowen, a popular crypto strategist with a large following on YouTube, warned his 818,000 subscribers that ETH might follow a similar trajectory to 2019, potentially dropping to around $1,000, which is the lower bound of the logarithmic regression band.
Cowen explained that the logarithmic regression band is a tool used to determine the fair value of an asset based on data that is not influenced by market bubbles. He pointed out that in 2019, as the Federal Reserve began cutting interest rates, ETH/USD reached the lower trend line of the logarithmic regression band. Now, with the Fed once again embarking on a rate-cutting cycle, ETH/USD is showing signs of trending downwards, possibly continuing into the fourth quarter of the year.
Interestingly, Cowen also mentioned that while ETH/USD may have further to fall, the ETH against Bitcoin (ETH/BTC) pair may have already hit a market bottom. Drawing a comparison to 2019, he noted that in that year, ETH/Bitcoin bottomed out in September before ETH/USD followed suit. The current low for ETH/Bitcoin coincides with September of 2024, indicating that a bottom may be close at hand. Cowen expressed confidence that ETH/BTC could soon bounce back and start an upward trend in 2025.
As of the time of writing, ETH/BTC is trading at 0.03905 BTC ($2,618), down 1.74% in the last 24 hours.
In conclusion, Cowen’s analysis suggests that Ethereum’s value could face significant pressure in the coming months, potentially dropping to levels not seen since 2019. However, he remains optimistic about the long-term prospects of ETH/BTC, indicating that a turnaround could be on the horizon. Investors and traders in the cryptocurrency space will be closely monitoring these developments to gauge the future direction of Ethereum’s price.
To stay updated on the latest cryptocurrency news and analysis, be sure to subscribe to receive email alerts directly to your inbox. You can also follow us on Twitter, Facebook, and Telegram for real-time updates. Don’t miss out on the latest price action and market insights from The Daily Hodl.