A well-known crypto analyst predicts that Ethereum (ETH) may need to face some “pain” before making a recovery. In a recent YouTube video, Benjamin Cowen, addressing his 886,000 followers, suggests that a shift in monetary policy might be necessary for ETH’s chart against Bitcoin (BTC) to hit a bottom.
“In order to alter monetary policy, some discomfort is inevitable. Embrace the pain. This discomfort is crucial in the long run. Remember, in the last cycle [in 2019], ETH/Bitcoin reached its lowest point after ETH/USD breached its support level,” Cowen explains. He highlights that in 2019, ETH dropped below its support against the US dollar just before the Federal Reserve halted quantitative tightening.
Cowen points out that most events from the previous cycle are essentially repeating in the current one, albeit on a more extended timeline. He mentions that the price points in this cycle are approximately 10 times higher than those in the 2019 market.
The analyst points out the difference in monetary policy between this cycle and the last one, noting that there has been no significant change in the current cycle. While the Fed reduced the pace of quantitative tightening, it has not completely stopped it post-halving, unlike in the previous cycle.
As of the latest update, ETH is trading at $1,907, experiencing a slight decrease of over 1% in the past 24 hours.
