dailyhodl.com
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.
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.