Analyst Benjamin Cowen Warns Ethereum Still in Danger of Witnessing 2019-Style Collapse – Here’s Why

A extensively adopted crypto analyst is issuing a warning on Ethereum, saying that ETH may nonetheless witness a 2019-style collapse.

In a brand new video replace, crypto strategist Benjamin Cowen tells his 796,000 YouTube subscribers that the situations for Ethereum now are much like that of mid-2019, and that the main sensible contract platform might undergo the same setback.

Cowen notes that in 2019, a slash in rates of interest coincided with a dramatic correction for ETH. With the Fed anticipated to start slicing charges once more sooner or later this yr, the analyst suggests {that a} related situation may play out.

“We’ll see how [Ethereum] performs out right here, if it does simply proceed to imitate kind of a much bigger model of [its pattern in 2019] or if it does one thing utterly totally different…

Lots of people don’t like the truth that I evaluate it to 2019 as a result of it’s gone up, as a result of it’s been taking rather a lot longer, however nonetheless, as a result of ETH/BTC continues to drop, and since the Fed has not but pivoted, why would we assume that it’s not following the identical factor?

Nothing has modified, proper? It’s nonetheless bleeding towards Bitcoin, the Fed has not but reduce charges, and that was the turning level for it on the midcycle prime final cycle.”

Supply: Benjamin Cowen/YouTube

Cowen says that if Ethereum repeats its 2019 correction, then a multi-month consolidation could also be in retailer earlier than the Fed begins a quantitative easing (QE) and crypto markets bounce once more close to the tip of 2024.

“In case you have a tough time with that – kind of a six to nine-month lull out there – what’s fascinating is that if all the things’s been shifted by about three quarters, what when you shift this once more?

You go three quarters out, you get to the tip of the yr after which QE (quantitative easing) returns and also you get one other bull market – I imply perhaps, perhaps that’s the way it performs out.”

Ethereum is buying and selling for $3,530 at time of writing, a 2.28% lower on the day.