Analyst warns that Ethereum's fate is tied to Bitcoin: “If ETH goes up from here, it will only be because…”

Regarding recent trends, prominent analysts say: benjamin cowen suggests that the future of Ethereum (CRYPTO: ETH) could be heavily influenced by the performance of Bitcoin (CRYPTO: BTC), leading to further declines in the former.

what happened: According to Cowen, Ethereum will only see an increase if Bitcoin experiences a significant rally, the Daily Hoddle reported on Thursday.

“If ETH goes up from here, it will only be because Bitcoin goes up further,” he said.

Additionally, Cowen predicts that the Ethereum/Bitcoin (ETH/BTC) pair is likely to maintain its downtrend in most scenarios, based on historical patterns.

He noted that “in 8 out of 10 quarters, Ethereum/Bitcoin went down, whether Bitcoin went up, down, or stayed the same.”

Cowen also warned that monetary policy could have a negative impact on Ethereum, saying, “ETH/USD still faces headwinds here, especially with the potential rejection of spot exchange traded funds (ETFs). “I am doing so,” he said.

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Why it's important: Ethereum has been characterized as underperforming this cycle in the cryptocurrency market, with ongoing challenges impacting its valuation and adoption. Despite historically having a strong correlation with Bitcoin, Ethereum's fundamentals are seen as a potential barrier to widespread investment in the cryptocurrency ecosystem.

Price action: At press time, Bitcoin was trading 0.42% higher at $61,449.78 and Ethereum was trading 0.08% higher at $2,981.32, according to Benzinga Pro.

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