Ethereum (ETH) Appears Close to Bottoming Out Against Bitcoin (BTC)

A widely followed crypto analyst says that smart contract platform Ethereum (ETH) appears close to bottoming out against Bitcoin (BTC).

Crypto analyst Benjamin Cowen says that smart contract platform Ethereum (ETH) appears to be nearing a bottom against Bitcoin (BTC).

In a new video update, the crypto strategist tells his 877,000 YouTube subscribers that the ETH/BTC pair will likely find its cycle low around 0.017 early next year.

"ETH/BTC market cap ratio is getting pretty close to the lows. I think there is a decent chance that it will bottom out."

According to Cowen, if the US Federal Reserve were to cease its monetary policy of quantitative tightening, the ETH/BTC pair would immediately bottom out. Quantitative tightening is when central banks shrink their budgets to reduce the amount of money circulation in the economy as a means of countering inflation.

"If the Fed were to end quantitative tightening, that could very well mark the bottom for ETH/BTC right now.

I don't really expect it to go higher until quantitative tightening is over, at least not in a durable fashion. That doesn't mean [ETH/BTC] can't bounce around but I just wouldn't expect that until quantitative tightening is over. What's likely going to happen at some point is whenever quantitative tightening ends, it'll likely get a rally back up to the bull market support band."

In June 2022, the Federal Reserve announced that it would reduce its balance sheet.

ETH/BTC is trading for 0.0264 at a price of around $2,227.

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