A crypto analyst has predicted when Ethereum, the world’s second-largest cryptocurrency, will backside towards Bitcoin, nonetheless, below sure situations.
Analyst Predicts ETH/BTC Backside Timeline
In a latest X (previously Twitter) put up, crypto analyst and founding father of ITC Crypto, Benjamin Cowen, shared his forecast concerning the Ethereum to Bitcoin worth ratio, projecting the timeline for when ETH/BTC would hit its lowest worth within the present market cycle.
Sharing insights available on the market situations, Cowen famous placing similarities between the current market’s dynamics and the one seen in 2019. He disclosed that ETH/BTC’s latest bounce mirrored the market’s conduct in 2019, two months earlier than the Federal Reserve (FED) reduce down charges.
Cowen predicts that the ETH/BTC ratio will attain the lowest level in its worth cycle when the FED makes a major change in its financial coverage, also known as a “pivot.” The crypto skilled expects this pivot to happen in a couple of months, in the end suggesting that Ethereum would backside towards Bitcoin within the coming months.
His evaluation can be based mostly on the belief that macroeconomic situations and the FED’s financial insurance policies can considerably influence the cryptocurrency market. Sharing a worth chart of Ethereum towards Bitcoin in one other put up, Cowen projected that the ETH/BTC ratio will head in direction of a spread of 0.03 and 0.04 by summer time.
Commenting on his prediction of ETH/BTC’s backside, a crypto neighborhood member expressed skepticism in regards to the FED’s chance of slicing down charges whereas inflation was nonetheless excessive. Cowen responded that the absence of a price reduce additional bolstered his beliefs that the ETH/BTC ratio has not but reached its lowest level. He means that except inflationary pressures are addressed, the ETH/BTC ratio might proceed on its downward pattern.
Crypto Professional Calls Ethereum A Larger Threat Asset
In one other put up, Cowen referred to Ethereum as a higher-risk asset and Bitcoin as a lower-risk asset. The crypto analyst’s forecast on Ethereum towards Bitcoin is underpinned by his interpretation of capital migration dynamics, suggesting that higher-risk belongings usually depreciate relative to lower-risk belongings.
He highlighted the uncertainty surrounding the long run market actions of ETH/BTC following the halving occasion. Cowen predicted that if ETH/BTC witnesses a “reduction rebound” after the halving, then he expects a rejection by the bull market assist band, significantly within the context of weekly closing costs, estimated to vary between $0.053 to $0.054.
Whereas acknowledging his previous successes in predicting ETH/BTC worth actions, Cowen highlighted that his predictions stay speculative, stating, “Simply because I’ve been proper up to now about ETH/BTC doesn’t imply I’ll proceed being proper.”
ETH bulls fail to carry $3,000 | Supply: ETHUSDT on Tradingview.com
Featured picture from Finbold, chart from Tradingview.com
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