Introduction to the Crypto Market Analysis
The crypto market has entered a brand new phase, in response to Benjamin Cowen, CEO and Founder of ITC Crypto. In his recent evaluation, Cowen identified that the market is currently in "Step 2" of his 2025 guide. This step is characterised by a decline in the value of Ethereum (ETH), which is the second-largest cryptocurrency.
Step 2: Crypto Market Sells Off As ETH Goes Home
Ethereum is currently experiencing a major sell-off, with investors reacting to its bearish price motion and tightening liquidity conditions. The price of Ethereum has struggled to keep up strong momentum on this bull market, failing to satisfy investors’ expectations. According to Cowen’s chart evaluation, the present downtrend aligns with the broader market cycle, where Bitcoin’s dominance rises above 60%, resulting in capital flows from altcoins like Ethereum.
Cowen’s Market Cycle Theory
In a previous post, Cowen outlined a six-step roadmap for his 2025 market cycle theory. The first step highlights a rise in Bitcoin’s dominance to over 60%, which occurs when investors leave altcoins and move into Bitcoin, searching for stability amidst the volatility and uncertainty of the crypto market. During this time, Ethereum and most altcoins underperform as a result of the shortage of interest and demand from investors.
Current Market Situation
Now, in Step 2 of Cowen’s 2025 guide, the crypto market has entered a correction phase, with Ethereum declining sharply. Cowen claims that ETH will eventually "go home," meaning the cryptocurrency will undergo a severe decline to long-term key support levels. In this second phase, the broader market also experiences a sell-off as investors take profit amidst volatility and ongoing declines in cryptocurrencies. Ethereum has failed to keep up positive momentum, recording steep declines as its price struggles to search out stable support. According to data, ETH is currently trading at $2,594, reflecting a large 16.4% price crash within the last 24 hours.
Ethereum’s Poor Performance
Over the past weeks, Ethereum has performed poorly, experiencing a pointy decline to recent lows while other cryptocurrencies have gained momentum. The altcoin’s price has plunged to recent lows, dropping by greater than 27.6% in only a month. This downturn has also significantly impacted its market capitalization, which has fallen to $312.6 billion.
What’s Next in Cowen’s 2025 Market Guide
In Step 3 of his market cycle theory for 2025, Cowen predicts that the Federal Reserve (FED) will shift its policy and end quantitative tightening, which has been draining liquidity from the financial markets. This decision is critical, as easing monetary conditions would pave the way in which for the analyst’s fourth step — a bullish phase fueled by market rallies. In the fifth step, Cowen predicts that macroeconomic conditions will deteriorate later within the 12 months, and the ultimate step in his 2025 market cycle guide forecasts a full-blown recession.
Conclusion
In conclusion, the crypto market has entered a brand new phase, with Ethereum experiencing a major decline. According to Cowen’s evaluation, this decline is a component of a bigger market cycle, which is able to eventually result in a bullish phase after which a recession. Investors needs to be cautious and stay informed concerning the market trends to make informed decisions. The crypto market is very volatile, and costs can fluctuate rapidly, making it essential to remain up-to-date with the most recent evaluation and predictions from experts like Cowen.
