Ethereum Faces “Pain” Before Recovery, Says Top Analyst

Crypto analyst Benjamin Cowen believes Ethereum (ETH) faces a period of hardship before it can recover.

Cowen shared that Ethereum’s price chart against Bitcoin (BTC) is likely to hit a bottom, but only after some significant pain.

He drew comparisons to the 2019 market, noting that ETH’s support levels against the US dollar were breached just before the Federal Reserve ended its tightening policies.

Cowen suggests that a similar scenario is unfolding today, but on a longer timeline. While the market feels different now, he explains that the key issue is the lack of a change in monetary policy, which is slowing the recovery process.

In the last cycle, changes to monetary policy came before the halving, but this time, the Federal Reserve’s tightening measures have only slowed down, leaving the market to face the brunt of the pain.

Cowen also pointed out that the magnitude of price levels during this cycle is much higher than in 2019, making it harder for many investors to adapt. The current market conditions are different because the Fed hasn’t fully shifted its policies as it did in the previous cycle, causing uncertainty and leading to slower progress.

However, Cowen believes that once the monetary policy changes, Ethereum, along with other assets, could begin to recover, setting the stage for a more positive phase in the market.