Renowned cryptocurrency analyst Benjamin Cowen has sounded the alarm on the short-term prospects of Ethereum (ETH), citing potential obstacles and the impact of tighter monetary policies.
The Destiny of the Dominant Altcoin Lies in the Hands of Bitcoin
In a recent video analysis, Cowen cautioned that Ethereum’s primary network asset, ETH, could face a sustained downward trend if the U.S. Securities and Exchange Commission (SEC) rejects spot exchange-traded funds (ETFs). He attributed this anticipated decline to the consequences of stricter monetary policies, which could lead to investor capitulation.
Cowen emphasized that any potential upward movement in ETH’s value would largely depend on Bitcoin’s performance. He stated that Ethereum’s fate is closely intertwined with Bitcoin’s price movements, and ETH can only experience significant gains if Bitcoin sees substantial growth.
The Ethereum/Bitcoin (ETH/BTC) trading ratio also caught Cowen’s attention. Based on historical patterns, he suggested that the top altcoin is likely to continue its downward trajectory. Regardless of whether Bitcoin’s price rises, falls, or remains stable, Ethereum tends to underperform relative to Bitcoin, indicating a consistent trend.
The Current State of Ethereum and Bitcoin
At the time of writing, Ethereum’s ETH has experienced a 1.52% decrease over the past 24 hours, trading at $2,959. This reflects the ongoing uncertainty surrounding the price trajectory of the dominant altcoin.
Cowen’s analysis emphasizes the significance of considering broader market dynamics, particularly the relationship between Ethereum and Bitcoin, when evaluating Ethereum’s future performance. Currently, Bitcoin is facing strong selling pressure, with its price fluctuating between $61,000 and $64,000. As of now, it is trading at $60,819 in the last 24 hours.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own research.
