Popular crypto analyst Benjamin Cowen says that Ethereum (ETH) is likely facing 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 its way towards the logarithmic regression band.
According to Cowen’s chart, he’s expecting ETH to continue its downtrend until it consolidates near the $600-$800 price level over the next year or so.
“I think ETH is heading home my friends.”
Cowen also says that crypto investors are refusing to accept the reality of the Federal Reserve’s impact on markets. According to the analyst, Fed Chair Jerome Powell has been very clear that interest rate hikes and tighter central bank liquidity are coming.
“Powell has been pretty clear from the beginning that the FED will continue raising rates and will not be pivoting anytime soon.
A lot of investors just have refused to believe it.”
As for Bitcoin (BTC), Cowen says in a recent strategy session that he’s open to the scenario of Bitcoin going as low as its 400-week simple moving average (SMA), which currently sits at about $13,000.
“I don’t think you should take it to the bank, but it is at last worthwhile to consider that if you were to extrapolate and say we’re going to the 400-week this cycle, where would that put it? The 400-week is funnily enough at $13,000. It’s moving up quickly…
By the time we get to it, it could be at $14,000, which could correspond to being down about 80% or so from the all-time high, and that would be a pretty important line in the sand.”
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