Renowned cryptocurrency analyst Benjamin Cowen has issued a cautionary statement regarding the short-term prospects of Ethereum (ETH), highlighting potential challenges and a more restrictive monetary policy.
The Altcoin King’s Destiny Lies in the Hands of Bitcoin
Cowen recently shared his insights in a video analysis, expressing concerns that the main network asset of Ethereum, ETH, could face sustained downward pressure due to potential rejections of spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). He attributed the anticipated decline to the impact of a tighter monetary policy, which could result in investor capitulation.
The analyst emphasized that any potential upward movement in ETH’s price would largely depend on whether Bitcoin’s value increases. He further noted that Ethereum’s performance is closely linked to the price movements of Bitcoin, meaning that Ethereum’s price can only rise if Bitcoin achieves significant gains.
The Fate of the Altcoin King Lies in Bitcoin’s Hands
Cowen also drew attention to the trading parity between Ethereum and Bitcoin (ETH/BTC), suggesting that based on historical trends, the dominant altcoin is likely to continue its downward trajectory. He highlighted 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 when compared to Bitcoin.
Current Status of Ethereum and Bitcoin
At the time of writing, Ethereum’s ETH has experienced a 1.52% decrease in the last 24 hours, with a trading price of $2,959. This reflects the ongoing uncertainty surrounding the price trajectory of the largest altcoin.
Cowen’s analysis underscores the significance of considering broader market dynamics, particularly the relationship between Ethereum and Bitcoin, when assessing 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 does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks, and should conduct their own research.
