Crypto analyst Benjamin Cowen has highlighted the recent weakness in stock markets and its potential impact on Ethereum (ETH) 
$2,287 prices. According to Cowen, particularly macroeconomic developments and upcoming data releases could significantly influence Ethereum’s short-term movement. He warns investors about possible price declines, emphasizing the correlation between stock markets and cryptocurrency markets. At the time of writing, Ethereum was trading at $1,909, having seen a 4.7% increase over the past 24 hours.
Stock Market Weakness Could Push ETH Down
Benjamin Cowen believes that the market weakness observed in February and March might extend into the first half of April. He thinks this phase could precede a larger downward trend. Cowen expressed concern that the customs uncertainty raised on April 2 and macro data to be released in April could pressure the markets. Such data could particularly influence inflation expectations, leading to adjustments in investors’ positions.
Another crucial factor emphasized by Cowen is investor sentiment. He argues that markets begin to price in a formal recession far before it is officially declared. This suggests the possibility of a significant drop occurring beforehand, followed by a robust recovery. He posits that Ethereum holds the potential to “return home,” meaning it could pull back to previously tested low levels.
Technical Outlook and Support Levels for Ethereum
From a technical perspective, Cowen suggests that Ethereum could retreat to its logarithmic trend line, indicating a level around $1,044. According to him, this region could be tested during a period of intense recessionary pressures. However, Cowen highlights that following such a decline, the $3,000 level could become a strong support for Ethereum. These fluctuations reflect the inherent volatility present in the cryptocurrency market.
The recent noticeable weakness in the S&P 500 index makes Cowen’s warnings even more significant. The pressure on stocks could directly affect cryptocurrency investors, necessitating a reassessment of investment strategies. During this period, investors should pay close attention to not only technical analyses but also macroeconomic developments and market sentiment.
Cowen’s comments remind us that Ethereum is shaped not only by its internal dynamics but also by the global economic climate. In this context, investors must listen not only to charts but also to broader economic developments.
