Popular crypto analyst believes Ethereum (ETH), will need to go through some pain before it can rebound.
Benjamin Cowen, in a recent YouTube video, tells his 886,000 followers that a change of monetary policy is probably needed to bring ETH’s graph against Bitcoin (BTC), to the bottom.
But in order to change monetary policies, there must be pain. Welcom to the suffering. You need this pain. “Remember last year [in 2019], ETH/Bitcoin dropped after ETH/USD failed to support.”
Cowen notes that ETH dropped below its level of support against the US Dollar in 2019, just before the Federal Reserve stopped quantitative tightening.
Cowen says the analyst is saying that the same thing that occurred in the last cycle will “basically happen this cycle” but on a much longer timeline. He also points out that the majority of price levels in the current market are about 10 times higher than they were for the 2019 markets.
The reason people have a difficult time with this cycle, and the feeling that it is so different, is because there was no change in monetary policy during this cycle. We saw in the previous cycle a shift in monetary policies in the year before the halving. Now that we’re in the year following the halving, the quantitative tightening has not changed. They’ve tapered it just a bit. “They’ve slowing it down but never stopped.”
ETH was trading at $1.907 as of the time this article is written. In the last 24 hours, the second-ranked cryptocurrency asset in terms of market capital has dropped more than 1%.
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The post Welcome to Pain – Benjamin Cowen says Ethereum mirrors 2019 market cycle’s playbook could be updated as new information becomes available.
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