Benjamin Cowen Warns: Ethereum Must Go Through Pain Before Recovery Comes – A Look at Central Bank Monetary Policy

Benjamin Cowen Warns: Ethereum Must Go Through Pain Before Recovery Comes – A Look at Central Bank Monetary Policy

Ethereum and the required changes in monetary policy

YouTube analyst Benjamin Cowen, who has a following of nearly 900,000 subscribers, expresses concern about the future of Ethereum. He expects Ethereum may have to endure further challenges before a recovery can occur. According to Cowen's assessment, a change in monetary policy by central banks is necessary to ensure a stable floor for Ethereum compared to Bitcoin.

Pain as a necessary factor

In his analysis, Cowen explains that “pain” is necessary to achieve change in monetary policy. He clarifies: "Welcome to pain. This is the pain you ultimately need." Cowen points out that Ethereum bottomed out against Bitcoin in the last cycle after previously losing its support against the US dollar.

He also points out that Ethereum lost its support against the US dollar back in 2019, shortly before the US Federal Reserve ended its monetary tightening policy. Cowen sees parallels to events in the current cycle, even if developments are occurring more slowly. Today, Ethereum prices are about 10 times higher than they were at their 2019 lows.

"The reason why many people find this phase of the market difficult to understand and why it feels so different is that monetary policy has not changed in this cycle. In the last cycle, we already saw this change in the pre-halving year. Now another year has passed and there is still no real easing of the Fed's tight monetary policy. It has become a little less tight, but it has not loosened the thumbscrews," Cowen further explains.

The situation is almost reached

The title of Cowen’s current analysis is “Ethereum: Almost there.” This suggests that the analyst believes Ethereum could soon bottom. However, this depends heavily on the development of the macroeconomic and geopolitical situation. There are currently no clear signs of improvement and there is a lot of uncertainty in the financial system, partly due to political developments, particularly Donald Trump's policies.

Conclusion

The future development of Ethereum remains tense and depends critically on the monetary policy decisions of central banks and global economic conditions. Analysts such as Benjamin Cowen are urging caution and pointing out that painful periods may still lie ahead before a recovery could take place.