This is the reason ETH is underperforming in this market cycle.

Famous analyst Benjamin Cowen believes that Ethereum (ETH) is repeating the cycle of 2019.

"Ethereum is going through a structure exactly like in 2019, but the reason this cycle feels very different is because it is taking place over a much longer period of time. However, there is a reason for it lasting longer, and that reason is the prolonged quantitative tightening. Remember that in the previous cycle, quantitative tightening ended in the year before the halving. Now, we have almost gone through half a year after the halving, and quantitative tightening is still ongoing, but it may end in the next few months."

ETH Price Chart | Source: Benjamin CowenQuantitative tightening is when central banks reduce their budgets to decrease the money supply in the economy in order to combat inflation.

Cowen stated that a summary document of the Federal Open Market Committee meeting (FOMC) in January indicates that the Federal Reserve (Fed) may end its quantitative tightening policy by mid-2025.

At the time of writing, the price of ETH is trading at $1,613, up nearly 13% in the past 24 hours.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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