Crypto analyst says Ethereum (ETH) is witnessing a huge correction as the Fed remains hawkish
Popular crypto analyst Benjamin Cowen says Ethereum (ETH) is likely to face a dramatic correction in the coming months as the Federal Reserve continues to hint at tighter monetary policy.
Cowen tells his 693,000 Twitter followers that he sees Ethereum heading towards the logarithmic regression band.
According to Cowen’s chart, he expects ETH to continue its downtrend until it consolidates near the $600-$800 price level in the next year or so.
“I think ETH is going home, my friends.”
Source: Benjamin Cowen/Twitter
Cowen also says that crypto investors are refusing to accept the reality of the Federal Reserve’s impact on the markets. According to the analyst, Fed Chair Jerome Powell has made it very clear that rate hikes and tighter central bank liquidity are on the way.
“Powell was pretty clear from the start that the Fed will keep raising rates and won’t do a reversal anytime soon.
Many investors simply refused to believe it.”
Regarding Bitcoin (BTC), Cowen said in a recent strategy session that he is open to the scenario of Bitcoin dropping to its 400-week simple moving average (SMA), which currently stands at around $13,000.
“I don’t think you should bank it, but it’s finally worth thinking about, if you extrapolated and said we’re going to the 400 weeks this cycle, where would that go? Funnily enough, the 400 week costs $13,000. It’s going up fast…
If we get to that, it could be $14,000, which could be about an 80% drop from the all-time high, and that would be a pretty important line in the sand.”
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