Prominent cryptocurrency analyst Benjamin Cowen predicted further bearish momentum for Ethereum (CRYPTO: ETH) to Bitcoin (CRYPTO: BTC) pair trade.
What Happened: Cowen, who had previously forecasted a rejection of the ETH/BTC ratio by the bull market support band, maintains his stance despite the recent market pump. He draws parallels between the current bounce and the one observed in 2019, just two months before the Federal Reserve began cutting interest rates.
"This latest pump just looks like the last pump it got before rate cuts last cycle, just before summer capitulation," Cowen states, suggesting that the current upward movement in the ETH/BTC ratio may be short-lived.
The analyst believes that the ETH/BTC ratio will likely bottom out once the Federal Reserve pivots its monetary policy stance, which is "still likely a few months away."
This prediction aligns with his earlier statement, where he anticipated the ratio to be rejected by the bull market support band, particularly when considering weekly closes between 0.053 and 0.054.
Also Read: 'Bitcoin Is In Correction Mode,' But That's 'Necessary For The Chart To Look Good,' Crypto Trader Reassures
Why It Matters: In the past week, Ethereum saw a 6.66% increase against Bitcoin, according to Tradingview. However, the second-largest cryptocurrency is down 5.81% over the past three months and 22.17% over the the past 12 months against the apex crypto.
In the latest CoinShares report, weekly outflows in Bitcoin and Ethereum stood at $423 million and $38.4 million, respectively. Cowen's analysis highlights the significant influence of macroeconomic factors, such as interest rate decisions, on the cryptocurrency market.
What's Next: The influence of Ethereum and Bitcoin as institutional asset classes are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
