However, one crypto analyst has predicted when ethereum, the world's second-largest cryptocurrency, will bottom out against bitcoin, under certain conditions.
Analyst Predicts eth/btc Bottom Timeline
In a recent x (formerly twitter) post, crypto analyst and founder of ITC crypto, Benjamin Cowen, x.com/intocryptoverse/status/1784666898229080391?s=46″ rel=”nofollow”>shared their forecast regarding the price ratio of ethereum to bitcoin, projecting the timeline of when eth/btc would reach its lowest value in the current market cycle.
Sharing insights into market conditions, Cowen noted striking similarities between current market dynamics and those seen in 2019. He revealed that the recent eth/btc bounce mirrored market behavior in 2019, two months before the bitcoin-takes-a-hit-as-fed-puts-rate-cuts-on-hold/” rel=”nofollow”>The Federal Reserve (FED) cut rates.
Cowen predicts that the eth/btc ratio will reach ethereum-fees-lowest-since-january-bottom-signal/” rel=”nofollow”>lowest point of its price cycle when the FED makes a significant change in its monetary policy, often called a “pivot.” The crypto expert expects this turnaround to occur within a few months, ultimately suggesting that ethereum will bottom out against bitcoin in the coming months.
Their analysis is also based on the assumption that macroeconomic conditions and the FED's monetary policies can bitcoin/” rel=”nofollow”>significantly impact the cryptocurrency market. Sharing a price chart of ethereum vs bitcoin in another post, Cowen x.com/intocryptoverse/status/1780450095319695705?s=46″ rel=”nofollow”>projected that the eth/btc ratio will head towards a range of 0.03 and 0.04 by the summer.
Commenting on his eth/btc bottom prediction, a member of the crypto community expressed skepticism about the bitcoin/” rel=”nofollow”>The Likelihood of the Federal Reserve Cutting Rates while inflation was still high. Cowen responded that the absence of a rate cut further reinforced his belief that the eth/btc ratio has not yet reached its lowest point. He suggests that unless inflationary pressures are addressed, the eth/btc ratio may crypto-optimism-prevails-bitcoin-buy-signals-surge/” rel=”nofollow”>continues its downward trend.
crypto Expert Calls ethereum a Higher Risk Asset
In another publication, Cowen referred to ethereum as a higher risk asset and bitcoin as a lower risk asset. The crypto analyst's forecast for ethereum vs. bitcoin is based on his interpretation of capital migration dynamics, suggesting that riskier assets generally depreciate relative to lower risk assets.
He highlighted the uncertainty surrounding future eth/btc market movements following the halving event. Cowen predicted that if eth/btc witnesses a “relief rally” after the halving, then he expects a rejection from the bull market support band, particularly in the context of weekly closing prices, which are estimated to range between $0.053 and $0.054.
While acknowledging his past successes in predicting eth/btc price movements, Cowen stressed that his predictions remain speculative, stating: “Just because I've been right so far about eth/btc doesn't mean I'll continue being right.”
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eth bulls fail to hold $3,000 | Source: ETHUSDT on Tradingview.com
Featured image of Finbold, chart from Tradingview.com
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