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YouTube’s experienced cryptocurrency analyst Benjamin Cowen has warned about the short-term expectations for Ethereum (ETH), citing potential headwinds and tighter monetary policy.
The Fate of the Altcoin King Rests in Bitcoin’s Hands
In a recent analysis video, Cowen mentioned that Ethereum’s main network asset, ETH, could face continuous downward pressure following potential rejections of spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). He linked the anticipated decline to the effects of tighter monetary policy that could lead to investor capitulation.
The analyst emphasized that any potential upward movement in ETH’s price would likely depend on whether there is an increase in Bitcoin’s value. He added that Ethereum’s performance is closely tied to Bitcoin’s price movements and that Ethereum’s price could rise only if Bitcoin achieves significant gains.
Cowen also drew attention to the Ethereum/Bitcoin (ETH/BTC) trading parity, suggesting based on historical trends that the largest 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 situation indicates a consistent trend of Ethereum underperforming compared to Bitcoin.
Current Situation of Ethereum and Bitcoin
At the time this article was written, Ethereum’s ETH has seen a 1.52% decrease over the last 24 hours, trading at $2,959. This reflects the ongoing uncertainty in the largest altcoin’s price trajectory.
Cowen’s analysis underscores the importance of considering broader market dynamics, especially the relationship between Ethereum and Bitcoin, when evaluating Ethereum’s future performance. Currently, Bitcoin is facing strong selling pressure, moving between $61,000 and $64,000, and trading at $60,819 in the last 24 hours as of this writing.
