Prominent cryptocurrency analyst Benjamin Cowen has recently forecasted a significant downturn for the Ethereum/Bitcoin (ETH/BTC) trading pair. He predicts a sharp drop in the trading value of Ethereum compared to Bitcoin, expecting a decline of up to 38% from current levels. This development is seen as a reinforcement of Bitcoin’s growing dominance in the cryptocurrency market.
Deep Dive in Trading Pair’s Value
In his communication with YouTube subscribers, Cowen highlighted that the ETH/BTC pair might hit its lowest point during the summer months. He suggests that this anticipated decline could sustain over an extended period before Ethereum demonstrates substantial recovery against the US dollar. The expected fall could push Ethereum’s price to retreat to a range between $1,800 and $1,900, further emphasizing the altcoin’s volatility against Bitcoin.
The significant depreciation of Ethereum against Bitcoin might also have broader implications for the altcoin market. A weakening Ethereum, as the largest altcoin by market value, could lead to a ripple effect where other altcoins might also lose value against Bitcoin, thus altering the market dynamics significantly.
Potential Bottom and Recovery Timelines
The analyst pointed out that the ETH/BTC trading pair might reach its lowest valuation as early as June. However, he underscored that this bottoming out is contingent on several factors, including pivotal monetary policy decisions by the U.S. Federal Reserve. The timing of Ethereum’s recovery against Bitcoin could be heavily influenced by these economic policies, making it crucial for investors to keep a keen eye on the Fed’s actions.
Cowen also noted the significant impact of the Fed’s monetary stance on the crypto market. He speculated that delays in rate cuts or a transition from quantitative tightening to quantitative easing could prolong the bottoming process of the ETH/BTC trading pair beyond the initially anticipated timeline.
Points to Consider
- Expect a 38% drop in the ETH/BTC trading pair, potentially reaching as low as $1,800 to $1,900.
- A detailed follow-up on U.S. Federal Reserve actions is crucial as they could significantly alter the recovery timeline of Ethereum against Bitcoin.
- The broader impact on the altcoin market should not be underestimated, with potential declines in other altcoins relative to Bitcoin.
Despite the short to medium-term caution, Cowen remains optimistic about Ethereum’s long-term prospects against Bitcoin, suggesting a bullish phase could follow when favorable conditions align, particularly in response to changes in monetary policy.