3 - 4 minute read
Crypto analyst Benjamin Cowen recently shared his outlook for Ethereum (ETH) for the second half of 2023. In a new strategy session, Cowen discussed how Bitcoin’s performance could impact altcoins, warned of the risks for Ethereum, and gave some insight into what traders could expect from the market moving forward.
According to Cowen, altcoins including ETH could face a “brutal” recovery phase as Bitcoin outperforms during the years when the crypto market is in recovery. Cowen suggests that Bitcoin could move to the downside, which could lead to altcoins collapsing at a much quicker rate. He also indicates that the altcoin market can still go down even when Bitcoin goes down and warns that the hype around altcoins can die down much faster than Bitcoin.
“The recovery years can still be brutal for the altcoin market in general…the altcoin market can still very much go down, even when Bitcoin goes down, and it can go quicker to the downside than Bitcoin.”
Cowen does not believe that the crypto markets will reach new all-time highs until the Federal Reserve stops raising interest rates to lower inflation and begins quantitative easing (QE). He explains that “these moves will eventually be faded” until we reach a period of QE. Cowen believes that traders should expect to see another move back to the downside before getting a sustained move to the upside.
“I don’t really see a sustained move to new highs coming until we get back to a period of QE.”
Cowen’s outlook for Ethereum is cautious, especially considering the current state of the crypto market. Ethereum, which is trading for $1,896 at the time of writing, is facing the possibility of another downturn. Cowen’s comments on QE highlight the importance of keeping an eye on government policies and their impact on the crypto market.
Based on Cowen’s analysis, traders should be cautious about investing in altcoins, including Ethereum, during the recovery phase. It is essential to keep an eye on Bitcoin’s performance and potential downturns, which could lead to altcoins plummeting quickly. While some analysts expect a sustained move to new all-time highs soon, Cowen suggests that traders should expect Ethereum to dip lower before making new highs.
The Bottom Line
Benjamin Cowen’s outlook for Ethereum suggests caution for investors, indicating the potential of a brutal recovery phase for altcoins. As traders move forward, they should keep an eye on Bitcoin and government policies impacting the market. It is essential to remain vigilant and analytical in one’s approach to the cryptocurrency market.