Analyst Benjamin Cowen, who is closely followed by cryptocurrency investors, thinks that the cryptocurrency Ethereum (ETH) is at risk of experiencing more negativity in the coming months. While Cowen expresses his concerns about the future of Ethereum, he particularly points out the possible effects of monetary policy on Ethereum.
According to Cowen, the future of Ethereum price may enter an uncertain period. In particular, Cowen suggests that a potential rejection of the spot exchange-traded fund (ETF) could negatively impact the Ethereum price. This could create a wave of uncertainty and anxiety among the Ethereum community.
“I think ETH/USD still faces some headwinds here, especially following the potential rejection of the spot exchange-traded fund (ETF)…I think the impact people will feel will just come from tighter monetary policy.”
As can be seen, Cowen’s concerns about the future of Ethereum are not limited to the rejection of the ETF. Cowen is also concerned about the effects of Ethereum’s potential for tighter monetary policy in the US. This could pressure the altcoin price downwards and cause investors to feel uncertain about the long-term outlook.
According to Cowen, there is a certain condition for the price of Ethereum to increase. “If ETH rises from here, it will only be because Bitcoin rises much more.” Cowen emphasizes that Bitcoin’s impact on Ethereum is a critical factor in the rise of the Ethereum price. However, in order for Ethereum to gain sufficient momentum on its own, uncertainties may need to decrease and a positive market environment may occur.
Finally, the analyst says that the Ethereum/Bitcoin (ETH/BTC) trading pair will continue to decline in most cases, looking at history.
“So if Ethereum goes up, Ethereum/Bitcoin will probably continue to fall. If Bitcoin moves sideways, Ethereum/Bitcoin will continue to decline in my opinion. And if Bitcoin goes down, Ethereum/Bitcoin will probably go down too because Bitcoin has been doing everything since 2022 began. In eight out of 10 quarters, Ethereum/Bitcoin has fallen whether Bitcoin has gone up, down or sideways. Ethereum/Bitcoin has generally declined.”
Leading altcoin ETH is trading at $2,978 at the time of writing.
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