Renowned cryptocurrency analyst Benjamin Cowen has issued a cautionary statement about the short-term outlook for Ethereum (ETH), citing potential obstacles and a tightening monetary policy.
The Altcoin King’s Fate Hangs in the Balance of Bitcoin
In a recent video analysis, Cowen highlighted the possibility of continuous downward pressure on Ethereum’s primary network asset, ETH, as a result of potential rejections of spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). He attributed the expected decline to the impact of a tighter monetary policy that could lead to investor capitulation.
Cowen stressed that any potential upward movement in ETH’s price would heavily depend on whether Bitcoin’s value increases. He further emphasized that Ethereum’s performance is intrinsically linked to Bitcoin’s price movements, and ETH’s price could only rise if Bitcoin achieves significant gains.
The Ethereum/Bitcoin (ETH/BTC) trading parity was also brought to attention by Cowen, who suggested that based on historical trends, the largest altcoin is likely to continue its downward trajectory. He pointed out that in most cases, Ethereum experiences declines relative to Bitcoin, regardless of whether Bitcoin’s price rises, falls, or remains stable. This consistent trend indicates that Ethereum consistently underperforms compared to Bitcoin.
Current Status of Ethereum and Bitcoin
As of the time of writing, Ethereum’s ETH has experienced a 1.52% decrease in the past 24 hours, trading at $2,959. This reflects the ongoing uncertainty surrounding the price trajectory of the leading altcoin.
Cowen’s analysis underscores 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, fluctuating between $61,000 and $64,000, and trading at $60,819 in the last 24 hours.
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Disclaimer:
The information provided in this article should not be regarded as investment advice. Investors should be aware that cryptocurrencies carry high volatility and associated risks and should conduct their own research.