Ethereum is not doing great this cycle and the sentiment surrounding the number two spot in the market is dire. Despite the interest rate cuts from central banks, top analyst Benjamin Cowen predicts a price drop to $ 1,000 for Ether.
Comparison of 2019 with 2024
For this negative prediction, Cowen makes a comparison between 2019 and 2024.
The reason he makes that comparison is that Ethereum also started to fall in 2019 after the US central bank made its first interest rate cuts. Based on this piece of price history, he sees Ethereum falling until the fourth quarter of 2024.
Only after interest rates reached their bottom of almost 0% in America did Ethereum start to rise again.
Expressed in Bitcoin, Cowen expects that Ethereum has already reached its bottom. With this, the analyst is actually saying that he expects even steeper declines for Bitcoin, and that would mean that new all-time highs will take some time.
The future of Ethereum
The question remains to what extent Ethereum has a future compared to Bitcoin. Ethereum launched in 2015 and brought with it great expectations about smart contracts.
Based on that name, many people thought that Ethereum could mean the end of the legal profession. We now know that smart contracts are not that smart at all, and that they should rather be called dumb contracts.
They are very simple, cannot think and are extremely prone to errors. In that respect, they are not useful at all to replace traditional contracts.
In fact, Ethereum is still looking for a clear application that could justify the protocol’s value of more than 300 billion dollars. For the time being, this is not the case, as is the case for Bitcoin.
Bitcoin is a store of value, while no one knows what Ethereum exactly is. Are there any interesting applications that you often use Ethereum for?
Source: https://newsbit.nl/topanalist-voorspelt-capitulatie-voor-ethereum/
