Ethereum's Bitcoin Slump: Cowen Warns of Further Decline Amid US Monetary Tightening

Cryptocurrency analyst Benjamin Cowen has warned that Ethereum (ETH) could continue to decline against Bitcoin (BTC) if the US monetary policy remains restrictive. In a recent video, Cowen told his 866,000 YouTube subscribers that Ethereum could continue to fall against Bitcoin despite its various narratives, such as the transition from proof of work to proof of stake and institutional buying.

Cowen believes that the Ethereum/Bitcoin pair previously bottomed out when the US monetary policy eased. He suggests that the current decline in the Ethereum/Bitcoin pair is likely to continue until quantitative tightening ends. According to Cowen, the Federal Reserve's balance sheet indicates that the Ethereum/Bitcoin pair bottomed out when quantitative tightening ended in the previous cycle.

Regarding the potential bottom for the Ethereum/Bitcoin pair, Cowen stated that he cannot be overly bearish on Ethereum at its current level of 0.023 BTC. However, he acknowledges that Ethereum could go lower until quantitative tightening ends. Cowen also mentioned that if quantitative tightening ends soon, the current level of 0.02337 BTC could be the bottom for a while, as it has been a support level for Ethereum/Bitcoin before.

At the time of writing, Ethereum is trading at 0.0285 BTC ($2,812). Cowen's analysis suggests that the future of Ethereum against Bitcoin will largely depend on the US monetary policy and the end of quantitative tightening.