Crypto analyst says Ethereum (ETH) is about to witness huge correction as 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 working 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 on its way home my friends.”
Cowen too says that crypto investors refuse to accept the reality of the Federal Reserve’s impact on the markets. According to the analyst, Fed chairman Jerome Powell has been very clear that interest rate increases and tighter central bank liquidity are coming.
“Powell has been pretty clear from the beginning that the FED will continue to raise interest rates and will not budge anytime soon.
Many investors have simply refused to believe it.”
As for Bitcoin (BTC), Cowen says in a recent strategy session that he is open to the scenario of Bitcoin going as low as its 400-week simple moving average (SMA), which is currently around $13,000.
“I don’t think you should take that to the bank, but it’s finally worth thinking that if you were to extrapolate and say we’re going to 400 weeks this cycle, where would that say? The 400 weeks are funny enough at $13,000. It’s going up fast…
By the time we get to that, it could be at $14,000, which could represent a decline of about 80% from the all-time high, and that would be a pretty important line in the sand.”
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