Crypto strategist Benjamin Cowen, Ethereum 
$2,578He stated that (ETH) carries the risk of losing value with the Fed’s interest rate cut cycle. In his statement, Cowen suggested that ETH could fall to the lower limit of the logarithmic regression band, following a course similar to the 2019 trend. What are the details of the latest evaluation for the altcoin king?
Fed Interest Cuts and Ethereum
According to the analyst, the logarithmic regression band is designed to track the true value of the asset with information that is “not bubble data.” Stating that the ETH/USD parity fell below the logarithmic regression trend line during the periods when the Fed started to reduce interest rates, Cowen stated that the same situation may now occur again.
“The reason I compare 2024 to 2019 is because when we look at the rate hike cycle, if we just look at interest rates, ETH/USD fell to the sub-logarithmic regression trend line around the time the Fed started cutting. The same thing happens again. “The Fed is starting to cut and turning the ETH/USD trend downward.”
Cowen also noted that ETH/BTC reached a bottom in 2019 before ETH/USD. He stated that ETH/BTC reached the bottom level in September 2024 and that it may drop a little more, but not too much.
“Remember, after ETH/Bitcoin reached its bottom in 2019, ETH/USD continued to fall.”
ETH/BTC Status
Currently, the ETH/BTC pair is trading at 0.03905 BTC ($2,618), having decreased by 1.74% in the last 24 hours. Cowen stated that ETH/BTC may have found the market bottom and ETH/USD may continue to lose value. ETH/USD may suffer further losses in a downtrend following the Fed’s interest rate cuts.
Ethereum’s future performance is likely to be shaped by the Fed’s policy decisions and general market conditions. Investors are recommended to act by taking these dynamics into consideration.
The current status of the ETH/BTC pair and the future of ETH/USD continue to cause significant debate in the cryptocurrency market. If Ether loses more and we see declines, that means more losses for the rest of the altcoins as well.
As a result, while there is a risk of a possible decline in the value of Ether, market dynamics and the Fed’s interest policies should be closely monitored. Investors should consider current analysis and forecasts to make informed decisions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
