Popular crypto analyst Benjamin Cowen says Ethereum (ETH) will likely 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 pushing its way towards the logarithmic regression band.
According to Cowen’s chart, he expects ETH to continue its downward trend until it consolidates near the $600-$800 price level over the next year.
“I think ETH is coming home my friends.”
cowen too said 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 hikes and central bank liquidity tightening are ahead.
“Powell was pretty clear early on that the FED will continue to raise rates and not pivot anytime soon.
Many investors simply refused to believe it.
As for Bitcoin (BTC), Cowen said in a recent strategy session, he was open to the scenario that Bitcoin would drop as low as its 400-week simple moving average (SMA), which currently sits at around $13,000.
“I don’t think you should take it to the bank, but it’s finally worth considering that if you were to extrapolate and say we’re going to 400 weeks this cycle, where would that put it? Week 400 is oddly enough at $13,000.
By the time we get there, it could be at $14,000, which could be about an 80% drop from the all-time high, and that would be a pretty big line in the sand.
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/Bahau/pikepicture