An analyst now says Ethereum is headed for massive capitulation with Fed rate cuts having significant impact on the asset.
A well-known crypto analyst is cautioning that Ethereum (ETH) might experience a significant drop in value alongside potential rate cuts from the Federal Reserve.
In a recent video update, crypto strategist Benjamin Cowen shared with his 818,000 YouTube followers that ETH could mirror a pattern from 2019, possibly falling to the lower end of the logarithmic regression band, which would place its value around $1,000.
Cowen explained that the logarithmic regression band is designed to gauge an asset’s fair value using data that excludes speculative bubbles.
He noted, “I compare 2024 to 2019 because, during the Fed’s rate-hiking cycle, the initial cuts coincided with ETH/USD reaching the lower logarithmic regression trend line.
This pattern is repeating now as the Fed begins to cut rates, and ETH/USD is trending downwards, likely continuing into Q4.”
Additionally, Cowen mentioned that the ETH/BTC pair may have already reached a market bottom, even if ETH/USD still has further to decline.
“Keep in mind that in 2019, ETH/BTC found its bottom before ETH/USD did.
That bottom occurred in September.
Interestingly, the current low for ETH/BTC is also in September 2024.
It might dip slightly lower, but I don’t expect a significant decline.
I can see it finding a bottom soon, bouncing back, and potentially rising in 2025.
However, while ETH/BTC bottomed in September 2019, ETH/USD continued to decline.”
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