Benjamin Cowen warns: Ethereum has to get through pain before the relaxation comes - a look at the monetary policy of the central banks

Veröffentlicht:

Von:

Ethereum and the necessary changes in monetary policy

The YouTube analyst Benjamin Cowen, who has a supporter of almost 900,000 subscribers, comments concerned about the future of Ethereum. He expects Ethereum to be able to get through further challenges before recovery can occur. According to Cowen's assessment, a change in monetary policy is necessary to secure a stable soil for Ethereum compared to Bitcoin.

Pain as a necessary factor

In his analysis, Cowen explains that "pain" is necessary to achieve a change in monetary policy. He illustrates: "Welcome to the pain. This is the pain you ultimately need." Cowen points out that Ethereum has reached its low point compared to Bitcoin in the last cycle after it had previously lost its support to the US dollar.

He also draws attention to the fact that Ethereum lost his support to the US dollar in 2019, shortly before the US Federal Reserve ended its policy of monetary tightening. Cowen sees parallels to the events in the current cycle, even if the developments take place more slowly. Today the prices of Ethereum are about ten times higher than to the low in 2019.

"The reason why many understand this market phase and why it feels so different is that monetary policy has not changed in this cycle. In the last cycle we experienced this change in the pre-Halving year. Now there has been another year and there is still no real relaxation of the strict monetary policy of the US Federal Reserve. Cowen on.

The situation is almost achieved

The title of Cowen's current analysis is "Ethereum: almost at the goal". This indicates that the analyst believes that Ethereum could soon reach its low point. However, this depends heavily on the development of the macroeconomic and geopolitical situation. There are currently no clear signs of improvement, and there is great uncertainty in the financial system, which is partly due to political developments, especially Donald Trump's policy.

FAZIT

The future development of Ethereum remains tense and depends crucially on the monetary policy decisions of the central banks and the global economic conditions. Analysts like Benjamin Cowen warn as caution and point out that painful phases may still be imminent before recovery could be emerged.