- Renowned analyst Benjamin Cowen warns of potential downside risks for Ethereum (ETH) in the coming months.
- He attributes this to the likely impact of tighter monetary policy and the potential rejection of the spot exchange-traded fund (ETF).
- Cowen suggests that the only condition for Ethereum’s rise would be a significant surge in Bitcoin’s value.
Analyst Benjamin Cowen predicts potential challenges for Ethereum due to monetary policy and possible rejection of the spot ETF. He suggests Bitcoin’s performance could influence Ethereum’s trajectory.
Ethereum Faces Downside Risks
Benjamin Cowen, a widely followed analyst, has recently expressed concerns about Ethereum’s future performance. In a video to his 801,000 YouTube subscribers, Cowen stated that Ethereum (ETH) is at risk of facing more downside over the coming months. He believes that the tighter monetary policy is likely to negatively affect Ethereum.
Impact of Spot ETF Rejection
Cowen further elaborated on the potential impact of the rejection of the spot exchange-traded fund (ETF) on Ethereum. He stated, “I think the impact that people are going to feel is just from tighter monetary policy. They’re going to blame it on the spot ETF and they’re going to capitulate potentially into that.”
Ethereum’s Rise Dependent on Bitcoin
According to Cowen, Ethereum could experience an increase in value under one condition. He suggests that if Ethereum goes up from here, it would only be due to Bitcoin going up a lot more. However, he also warns that the Ethereum/Bitcoin (ETH/BTC) pair is likely to keep falling under most circumstances based on historical trends.
Ethereum/Bitcoin Pair Likely to Fall
Cowen explains, “So if Ethereum goes up, Ethereum/Bitcoin is probably going to keep going down. If Bitcoin goes sideways, Ethereum/Bitcoin is going to keep going down in my opinion. And if Bitcoin goes down, Ethereum/Bitcoin probably goes down because Bitcoin has been doing all sorts of things since 2022 began. In eight of 10 quarters, Ethereum/Bitcoin has gone down whether Bitcoin went up, down or sideways. Ethereum/Bitcoin generally went down.” At the time of writing, ETH is trading at $3,002.
Conclusion
In conclusion, Cowen’s analysis suggests potential downside risks for Ethereum in the coming months due to monetary policy and the potential rejection of the spot ETF. He also highlights the dependency of Ethereum’s performance on Bitcoin’s trajectory. Investors are advised to stay informed and consider these factors when making investment decisions.
