Analysis: Ethereum’s Bottom Against Bitcoin Predicted to Be Months Away

A recent analysis by prominent cryptocurrency analyst Benjamin Cowen suggests that Ethereum’s bottom against Bitcoin may still be a few months away. Despite a recent market pump, Cowen maintains his bearish stance on the ETH/BTC pair trade.

Cowen draws parallels between the current bounce in the ETH/BTC ratio and a similar movement observed in 2019, just before the Federal Reserve started cutting interest rates. He believes that the current upward movement may be short-lived, akin to the previous cycle before a summer capitulation.

The key factor in Cowen’s prediction is the Federal Reserve’s monetary policy stance, which he suggests is likely to pivot in the coming months. This aligns with his earlier forecast of the ETH/BTC ratio being rejected by the bull market support band, particularly at weekly closes between 0.053 and 0.054.

While Ethereum saw a 6.66% increase against Bitcoin in the past week, it remains down 5.81% over the past three months and 22.17% over the past year. The influence of macroeconomic factors, such as interest rate decisions, continues to play a significant role in the cryptocurrency market, as highlighted in Cowen’s analysis.

In the latest CoinShares report, weekly outflows in Bitcoin and Ethereum were noted at $423 million and $38.4 million, respectively, indicating ongoing market dynamics. The upcoming Future of Digital Assets event hosted by Benzinga aims to delve deeper into the institutional aspects of Ethereum and Bitcoin as asset classes.

As the crypto market continues to evolve, insights from analysts like Benjamin Cowen provide valuable perspectives on the dynamics between Ethereum and Bitcoin. Investors and traders are advised to stay informed about market trends and developments to make well-informed decisions in the volatile cryptocurrency space.

For more updates and analysis on the crypto market, stay tuned to Benzinga for expert insights and in-depth coverage.