Crypto strategist Benjamin Cowen highlighted the risk of Ethereum (ETH) 
$3,437 losing value as the Fed enters a cycle of interest rate cuts. He suggested that ETH could follow a trend similar to 2019, potentially dropping to the lower boundary of the logarithmic regression band.
Interest Rate Cuts and Ethereum
According to Cowen, the logarithmic regression band is designed to track the asset’s real value without “bubble data.” He pointed out that during previous periods when the Fed began cutting rates, the ETH/USD pair fell below the logarithmic regression trend line, indicating that this could happen again.
“The reason I compare 2024 to 2019 is that during the rate hike cycle, looking only at interest rates, the ETH/USD fell to the lower logarithmic regression trend line when the Fed started cutting. The same thing is happening again. The Fed begins to cut, and the ETH/USD trend turns downward.”
Cowen also noted that the ETH/BTC pair reached its lowest point before ETH/USD in 2019. He indicated that while ETH/BTC might hit a low in September 2024, it could decline further, albeit slightly.
Current ETH/BTC Status
Currently, the ETH/BTC pair is trading at 0.03905 BTC ($2,618), reflecting a 1.74% decrease in the last 24 hours. Cowen suggested that the ETH/BTC pair may have found its market low, while ETH/USD could continue to lose value. The ETH/USD pair may experience further declines as the Fed cuts rates.
The future performance of Ethereum appears to be shaped by the Fed’s policy decisions and overall market conditions. It is recommended that participants consider these dynamics when making decisions.
The current status of the ETH/BTC pair and the future of ETH/USD continue to spark significant discussions in the cryptocurrency market. If Ether experiences further declines, it could signal additional losses for other altcoins.
In conclusion, while there is a potential risk of Ethereum’s value decreasing, market dynamics and the Fed’s interest rate policies should be closely monitored. Participants should consider current analyses and forecasts to make informed decisions.
