Analyst predicts Ethereum could outperform Bitcoin in next cycle

Crypto analyst Benjamin Cowen recently expressed confidence that Ethereum (CRYPTO:ETH) could outperform Bitcoin (CRYPTO:BTC) in the coming months. 

During an interview on the Bankless podcast, Cowen discussed the market dynamics of the two leading cryptocurrencies, analyzing their recent price trends and comparing them to previous bull cycles. 

He believes Ethereum's current downtrend could end by year-end, paving the way for a recovery and possible outperformance against Bitcoin.

Cowen highlighted that Ethereum typically follows a distinct trend pattern in each bull cycle, where the ETH/BTC trading pair reaches a peak, drops to a low, and then forms a lower high. 

He recalled that in 2016, "Ethereum broke support for the first time, peaked, and then experienced a decline of over 70%. However, the cryptocurrency eventually recovered and resumed its upward trajectory in the post-halving year." 

Cowen noted that Ethereum is currently following a similar pattern and believes it could repeat its past performance.

Discussing the market's recent conditions, Cowen described the Third Quarter (Q3) of 2024 as uneventful, with sharp declines in August and September. 

He predicted that Ethereum might drop even lower before seeing a significant price increase. 

"Historically, during previous bull cycles, Ethereum has outperformed Bitcoin, and I’m pretty confident it could do so again in this cycle," Cowen remarked, emphasizing his optimistic outlook for Ethereum.

Cowen also expects a shift in the Federal Reserve's (FED) policies could soon occur, potentially driving the ETH/BTC pair to a price bottom by the end of the year. 

He projected that Ethereum could dip below $2,000 in the Fourth Quarter (Q4) of 2024 before rebounding to new highs.

When asked if the bull market is over, Cowen addressed concerns stemming from current market trends. 

He clarified that the crypto market has already experienced the Quantitative Tightening (QT) phase of the bull market and is preparing for a Quantitative Easing (QE) phase by 2025. 

Cowen’s analysis suggests that while current conditions appear bearish, they may set the stage for a stronger bull market in the years ahead.

At the time of reporting, the Bitcoin (BTC) price was $57,864.20, and the Ethereum (ETH) price was $2,354.67.