Closely followed crypto analyst Benjamin Cowen has warned investors about approaching Ethereum (ETH) cautiously in the short to medium term against Bitcoin (BTC). He announced an expected downward trend for the Ethereum/Bitcoin (ETH/BTC) trading pair.
ETH/BTC Trading Pair Expected to Drop by 38%
In his latest video to his YouTube subscribers, Cowen shared his forecast of a potential drop in the ETH/BTC trading pair in the coming months. He anticipates that the trading pair will hit a low during the summer months and face prolonged downward pressure before Ethereum shows impressive performance against the US dollar.
The analyst’s analysis suggests that the ETH/BTC trading pair could experience a drop of up to 38% from current levels, indicating that Bitcoin’s increasing dominance in the crypto market will continue. Cowen’s forecast points to a pullback to a range of $1,800 to $1,900 for ETH.
At this point, it is important to note that the largest altcoin by market value, ETH, losing value against BTC and the largest cryptocurrency’s increasing market dominance is generally negative for the altcoin market. Such a decline could also cause other altcoins to lose value against Bitcoin.
Expected to Hit Bottom as Early as June
Cowen mentioned that the potential bottoming out of the ETH/BTC trading pair could happen as early as June. However, he emphasized that this forecast depends on various factors, including decisions on monetary policy by the US Federal Reserve (Fed). Cowen suggested that the timing of Ethereum’s potential recovery against Bitcoin could be particularly affected by changes in the Fed’s monetary policy, highlighting the importance of closely monitoring the central bank’s actions.
Cowen stressed the significance of the Fed’s decisions on monetary policy, expecting that if the central bank delays implementing measures such as rate cuts or shifts from quantitative tightening to quantitative easing, the bottoming process of the ETH/BTC trading pair could extend beyond June.
Although Cowen remains cautious about Ethereum against Bitcoin in the short and medium term, he maintains a bullish outlook for the altcoin king’s performance against Bitcoin in the long term, anticipating a potential bull phase for the ETH/BTC trading pair when certain conditions like changes in monetary policy come into play.
