Ethereum might face a big drop in value as the Federal Reserve starts cutting interest rates, according to Benjamin Cowen.

A widely followed crypto analyst is issuing a warning that Ethereum (ETH) may collapse in value in sync with Fed rate cuts.

In a new video update, crypto strategist Benjamin Cowen tells his 818,000 YouTube subscribers that ETH may follow a similar 2019 pattern and plummet to the lower bound of the logarithmic regression band putting the top altcoin at around $1,000.

According to the analyst, the logarithmic regression band is designed to track the fair value of an asset using “non-bubble data.”

“The reason I compare 2024 to 2019 is because if you look at the rate hiking cycle, if you just look at interest rates, where the Fed started to cut that was when ETH/USD went to the lower logarithmic regression trend line – when it went home when the Fed started to cut. And now the same thing is happening again. The Fed is starting to cut, and as it does ETH/USD is trending down, potentially through Q4.”