Legendary crypto analyst, Benjamin Cowen, has expressed confidence that Ethereum (ETH), the world’s largest altcoin, could soon outperform Bitcoin (BTC). This optimistic projection comes amidst significant price fluctuations in both leading cryptocurrencies. However, Cowen foresees Ethereum’s current downtrend concluding by year’s end, setting the stage for a major resurgence.
Ethereum On Track To Outperform Bitcoin
In a recent interview on the Bankless podcast, Cowen provided an in-depth analysis of current crypto market conditions, focusing on Bitcoin and Ethereum price movements compared to previous bull cycles. The analyst offered insights into Ethereum’s outlook, believing that the cryptocurrency will outperform Bitcoin in the next bull cycle.
Cowen disclosed that the Third Quarter (Q3) of 2024 has been relatively uneventful, with August and September seeing sharp price declines and negative sentiment throughout the broader crypto market. He predicted that Ethereum could drop even lower from this point before experiencing any notable uptick in its price.
The analyst noted that Ethereum usually follows a unique trend pattern in each cycle. Specifically, the ETH/BTC trading pair tends to reach a top, then a low, and subsequently form a lower high. He recalled that in 2016, Ethereum broke support for the first time, peaked, and then experienced a decline of over 70%. However, the cryptocurrency eventually recovered and resumed its upward trajectory in the post-halving year.
Cowen highlighted that this unique price action has been repeated in every bull cycle, and Ethereum is currently following a similar trajectory. He pointed out that historically, during previous bull cycles, Ethereum has outperformed Bitcoin, expressing confidence that the cryptocurrency could do so again in this cycle.
As a result, Cowen anticipates a pivot from the Federal Reserve (FED) is imminent, which he believes would drive the ETH/BTC pair to a price bottom by the end of the year. The analyst has predicted that the price of Ethereum may likely drop below $2,000 in the Fourth Quarter (Q4) of this year, before experiencing a bounce to new levels.
Is The Bull Market Dead?
During the podcast, Cowen was bombarded with a slew of questions, the most notable being, “Is the bull market over?” The reason behind this question can be attributed to the current market conditions in the crypto space.
Following Bitcoin’s all-time high of over $73,000 in March 2024, the cryptocurrency has been on a significant downtrend, even falling below $54,000 at some point this year. This unexpected bearish trend after its halving event on April 20 has led to speculations about the bull run being over.
In addressing whether the bull market has ended or is yet to begin, Cowen clarified that the market has already experienced the Quantitative Tightening (QT) phase of the bull market and is positioning itself for a Quantitative Easing (QE) bull market by 2025.
Cowen’s analysis provides a nuanced understanding of the crypto market’s current state and future prospects. As the year progresses, investors and enthusiasts alike will be keenly watching the movements of Ethereum and Bitcoin, anticipating the next big shift in the market dynamics.
