The famous cryptocurrency analyst Benjamin Cowen, who predicted the recent sharp correction in the cryptocurrency market, issued a stern warning to Ethereum (ETH) investors. The analyst now foresees a significant drop in ETH’s price.
Ethereum May Retract Sharply
Sharing his views on the social media platform X, Cowen compared the altcoin king Ethereum’s past market cycles in 2016 and 2019. Cowen’s analysis suggested that Ethereum might be on the verge of repeating its historical major corrections.
Noting that Ethereum recently collapsed against Bitcoin (ETH/BTC), Cowen believes this indicates a more significant drop for ETH/USD. He warned, “This idea for ETH/USD is starting to look more convincing.”
In May of this year, Cowen predicted a sharp 70% drop in ETH’s price, estimating a decline to around $1,150. Detailing his forecast, the analyst stated, “In the last two instances where ETH/BTC lost value, ETH/USD dropped by approximately 70%.”
Cowen’s prediction serves as a serious warning for those who have been positioning themselves for a rise in altcoins after a 2.5-year wait, indicating that there is still significant downside risk in the market.
Fed Rate Cut Could Trigger the Drop
Additionally, Cowen warned that Ethereum seems to be mirroring its 2019 market cycle. He predicted that ETH might hover at its current levels for a few weeks before experiencing another drop triggered by a potential Fed rate cut, stating, “If it follows its 2019 trend, it will maintain these levels for a few weeks and then drop again after the Fed cuts rates. No guarantees, just following the most useful analogy that has been the best guide so far this year.”
According to CME’s FedWatch tool, the likelihood of the Fed cutting rates next month has risen to 100% following recent corrections in both the cryptocurrency and stock markets. This potential rate cut could serve as a catalyst for the predicted drop in Ethereum’s price.
Last month, Cowen also predicted a significant correction for Bitcoin, noting its similarity to the 2019 cycle. He warned that this correction would likely lead to a capitulation of altcoins against the US dollar.
