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Benjamin Cowen Warns Ethereum Could Continue Bleeding Against Bitcoin, Says One Factor To Determine Bottom

Published

1 month ago

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The widely followed cryptocurrency analyst Benjamin Cowen is warning that Ethereum (ETH) could slide further against Bitcoin (BTC).

In a new video, Cowen tells his 866,000 YouTube subscribers that Ethereum could continue falling against Bitcoin if the US monetary policy remains restrictive.

“This cycle Ethereum has had plenty of narratives – the transition from proof of work to proof of stake, it being deflationary for a period of time…

…among other narratives as well – the spot ETF, institutional buying… it has not stopped Ethereum/Bitcoin from dropping…

…as we’ve said for a long time until quantitative tightening ends, Ethereum/Bitcoin can go lower.”

According to Cowen, the Ethereum/Bitcoin pair previously bottomed out when the US monetary policy eased.

“There’s not really a clear reason to assume that the [Ethereum/Bitcoin] bleed is over until quantitative tightening ends. The reason I made that assumption was if you look at the balance sheet of the Federal Reserve you will notice that last cycle Ethereum/Bitcoin bottomed precisely when quantitative tightening ended.

So as quantitative tightening continued, Ethereum/Bitcoin went down. When quantitative easing began Ethereum/Bitcoin went up. It was as simple as that and it had nothing to do with all the other narratives out there.”

On where and when the Ethereum/Bitcoin pair could bottom out, the widely followed analyst says,

“I don’t know how much lower it [Ethereum] has to go. It’s gone to 0.023 BTC. I can’t with a clear conscience be overly bearish on Ethereum/Bitcoin at 0.023 BTC. I can acknowledge that it could go lower until quantitative tightening ends. I can accept that as a reality.

But there’s also a potential reality where quantitative tightening ends soon and maybe it bottoms right here [0.02337 BTC] for a while especially considering that this has been a support level for Ethereum/Bitcoin before…

…so for me I think that it’s got to be getting close. But if you were to tell me that quantitative tightening were to continue for another six months then I would probably say ‘yeah, it’s probably going to go down.’ But if you were to tell me the quantitative tightening is going to end next month, then this very well could be the bottom.”

Ethereum is trading at 0.0285 BTC ($2,812) at time of writing.

 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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ADA

Here’s a Potential Downside Price Target for Cardano If ADA Sees New Correction, According to Benjamin Cowen

Published

3 months ago

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December 25, 2024

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A widely followed crypto analyst is identifying the downside price target for smart contract platform Cardano (ADA) if it undergoes another correction.

In a new video update, crypto strategist Benjamin Cowen tells his 849,000 YouTube subscribers that if the Federal Reserve doesn’t bring back quantitative easing (QE), then ADA could continue to slip.

“There’s also a chance [ADA] could go lower, especially if it follows what it did last cycle… If it were to drop 56%, that would actually put you below $0.60, which is right where it went last time…

There’s always a chance that it comes back down to [the $0.357 price level], because [Fed Chair Jerome] Powell just says ‘no QE, continue on playing in the sandbox and the cryptoverse and we’ll give you QE sometime later.’ There’s a chance that happens.”

Quantitative easing is when a government’s central bank purchases financial assets to increase the money supply and stimulate economic activity.

Cowen goes on to say that ADA’s technical indicators, such as its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA), are lining up with the theory that the crypto asset could see another sizeable dip.

“The other thing to look at is the bull market support band. The bull market support band for ADA to Bitcoin – you can see that first of all, it wicked below it [in mid 2023] but it had a weekly close right around the 20-week SMA. [Earlier this year] it was just above the 21-week EMA, so I would also keep an eye on that.

The 20-week SMA for ADA is around $0.56 [and] the 21-week EMA is around $0.67, so that would also correspond to [a price tag of around $0.53].”

ADA is trading for $0.89 at time of writing, a 3% increase during the last day. On December 2nd, it was valued at $1.21.

 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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