Ethereum (ETH) Could “Capitulate” Against Bitcoin (BTC), Analyst Benjamin Cowen Warns

If popular analyst Benjamin Cowen is to be believed, Ethereum could be about to “capitulate” against Bitcoin.

Chart master Benjamin Cowen sees a ‘capitulation’ coming for Ethereum against Bitcoin. But why is the analyst bearish on ETH, and specifically against BTC?

Ethereum versus Bitcoin

In a new update on Youtube, Cowen shares with his 800,000+ subscribers that Ethereum might be in trouble if the Federal Reserve cuts rates in September; that is if the trading pair follows the same price path as it did during the 2016 market cycle.

“What is very interesting about 2016 when you look at the chart is that back then the lows were hit in June, whereas this time it happened in May; about a month earlier,” the analyst points out on the chart below.

It might seem a bit blurry in the chart above, but ever since Ethereum's massive spike during the 2017/2018 bull run against Bitcoin, the coin has been mostly trending down.

In the end, it remains to be seen whether this downtrend can ever be turned into an uptrend. For now, Bitcoin is outperforming ETH over the longer term, which makes sense if you look at the utility of the financial assets.

Bitcoin has ‘proven’ itself as a store of value, while Ethereum is still looking for a good application.

What Will Ethereum Do?

It's hard to say what we can expect from Ethereum in the upcoming period. Today, the Ethereum ETFs are launching in the United States.

These could theoretically boost the asset, but of course still don’t provide a valuable use case. For Ethereum, it is to be hoped that the funds that parties like BlackRock are now launching on the blockchain prove to be a success.

However, for this to happen, they must prove to be a valuable addition to existing funds. One advantage they have is that they are tradable 24/7 in principle, but in terms of efficiency, there are few advantages to be found.

After all, transactions on Ethereum are expensive and can be extremely costly, especially in times of stress. In that respect, the underlying technology does not seem to be built for huge amounts of transactions.

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