Renowned cryptocurrency analyst BENJAMIN COWEN has drawn parallels between Ethereum’s current market behavior and its 2019 cycle. In a recent YouTube video, Cowen highlighted that Ethereum’s recent price movements appear to mirror patterns observed six years ago, albeit on a larger scale.
Cowen, who boasts a substantial following of 891,000 subscribers, explained, “Ethereum’s going through the same structure that it went through in 2019, but the reason why the cycle feels so different is because it has taken place over a much longer period of time. This extended duration is largely due to the prolonged phase of quantitative tightening (QT), which has persisted longer than in the previous cycle.”
Quantitative tightening refers to the process by which central banks reduce their balance sheets to decrease the money supply, often implemented to curb inflationary pressures.
Cowen further elaborated that a summary document from a Federal Open Market Committee meeting in January suggests the U.S. Federal Reserve might conclude its QT efforts by mid-2025. This, he believes, could have significant implications for Ethereum and the broader cryptocurrency market.
At the time of writing, Ethereum is trading at $1,652, marking a nearly 12% increase over the past 24 hours. As the second-largest cryptocurrency by market capitalization, Ethereum continues to draw significant attention from investors and analysts alike.